Out West Restaurant Group, an Outback Steakhouse franchisee, filed for Chapter 11 protection in Delaware on Monday. Parent company Bloomin' Brands agreed to buy its assets for $26.3 million, subject to higher offers, and to provide up to $5.5 million of financing during the case.
Out West Restaurant Group, a large Outback Steakhouse franchisee, filed for Chapter 11 bankruptcy protection on Monday, 2 November. The company filed in the U.S. Bankruptcy Court for the District of Delaware. Its parent company, Bloomin' Brands, agreed to buy its assets for $26.3 million, subject to higher offers.
The San Diego-based franchisee, legally named Cerca Trova Restaurant Group Holdings, runs 61 Outback restaurants in California, Arizona, Colorado, Nevada and New Mexico. It said its restaurants would remain open.
Bloomin' Brands agreed to provide up to $5.5 million of debtor-in-possession financing to support Out West during the bankruptcy process. The company said the situation is isolated to the franchisee and does not affect its corporate operations, financing, or liquidity. It also said it is participating as a stalking-horse bidder.
