Multiple Steakhouses On The Line

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Outback Steakhouse’s largest U.S. franchisee just filed Chapter 11, and the parent company stepped in with cash and a bid to buy 61 locations.

Story Snapshot

Cerca Trova Restaurant Group, doing business as Out West Restaurant Group, filed Chapter 11 in Delaware.
Bloomin’ Brands set a $26.3 million stalking-horse bid to buy most assets.
Bloomin’ Brands offered up to $5.5 million in debtor-in-possession financing to keep stores running.
The 61 restaurants span California, Arizona, Nevada, Colorado, and New Mexico.

What Filed, Who Filed, and What It Covers

Bloomin’ Brands reported that Cerca Trova Restaurant Group Holdings, Inc., doing business as Out West Restaurant Group, and its subsidiaries filed voluntary Chapter 11 petitions in the United States Bankruptcy Court for the District of Delaware. The filing identifies Out West as an independently owned franchisee operating 61 Outback Steakhouse restaurants in the western United States. The coverage includes units across California, Arizona, Nevada, Colorado, and New Mexico. This is a franchisee bankruptcy, not the bankruptcy of the Outback brand or Bloomin’ Brands itself.

Bloomin’ Brands disclosed a plan to buy all of Out West’s assets substantially through a stalking-horse agreement. The base price is $26.3 million, subject to adjustments and assumed liabilities. A stalking-horse bid sets the floor for a court-run auction. Other bidders can top it. The agreement is not a completed sale. It signals Bloomin’ Brands wants control of these locations if the court approves and no higher bid wins.

How the Restaurants Keep Operating During Bankruptcy

Bloomin’ Brands agreed to provide up to $5.5 million in debtor-in-possession financing, which is money a company borrows after filing Chapter 11, often with court oversight. Under the disclosed terms, the facility is non-interest-bearing and is meant to fund ongoing operations during the case. Reports echoed that purpose, framing the loan as a bridge to keep the lights on and pay near-term costs while the sale process runs. For guests and workers, near-term operations were described as continuing.

The $26.3 million figure is a headline number, but it is not the final economic outcome. The price can be adjusted for vendor liabilities and can be reduced by amounts drawn under the debtor-in-possession facility and other factors in the agreement. Sensible readers should treat the bid as a starting point, with the bankruptcy court controlling the next steps through bidding procedures, objections, and a sale hearing.

Why This Filing Fits a Bigger Pattern

This case sits inside a wider wave of restaurant and franchisee restructurings. Industry coverage shows restaurant bankruptcies surged in 2024 and stayed elevated into 2025 and 2026 as food, wage, rent, and debt costs squeezed margins. One outlet reported at least ten multi-unit franchisee filings by mid-2026, exceeding the prior year’s count. Broader data showed total business bankruptcies up about 17% year over year through June 2026. The Out West filing mirrors that trend line rather than signaling a brand collapse.

🤠 Cerca Trova Restaurant Group Holdings, a franchisee of Outback Steakhouse owner Bloomin' Brands, filed for Chapter 11 bankruptcy protection on Monday.

▪️ The company, which does business as Out West Restaurant Group, operates 61 Outback Steakhouse restaurants in the western… pic.twitter.com/Hz2rkzOY6n

— DailyJobCuts . com – Layoffs / Job / Economy News (@dailyjobcuts) November 2, 2026

Chapter 11 also follows a familiar path in franchising. A large operator files, seeks court approval to keep paying employees and key vendors, lines up a stalking-horse bidder, and runs a fast sale to preserve as many stores as possible. Market reports describe that blueprint across several concepts in recent years. Out West’s structure—a bankruptcy filing, bridge financing, and an auction with a stalking-horse bidder from the franchisor—aligns with that playbook.

What Matters Next for Customers, Workers, and Suppliers

Store status depends on court orders, lease talks, and store-level performance. The filing itself did not list closures or a final operating plan. The disclosed message emphasized continued operations during the case, not permanent guarantees. Next steps will include bidding procedures, potential competing bids, and a sale hearing. If Bloomin’ Brands wins, integration and lease decisions will shape which locations stay open and how quickly changes happen. For now, the steak still gets grilled, and paychecks still clear.