November 5, 2026, 2:29 p.m. ET
An Outback Steakhouse franchisee that recently closed several restaurants has filed for Chapter 11 bankruptcy, putting 61 remaining locations in the Western United States up for sale.
Cerca Trova Restaurant Group Holdings, which operates as Out West Restaurant Group, filed for bankruptcy Nov. 2 in the U.S. Bankruptcy Court for the District of Delaware, according to court records. The independent franchisee operates Outback restaurants in five Western states.
The bankruptcy filing follows the closure of 10 Outback restaurants in October and three other establishments earlier this year, according to Fast Company. The company has faced years of financial challenges, including declining customer traffic and rising food and labor costs.
Bloomin’ Brands, the parent company of Outback Steakhouse, has agreed to make an initial offer of $26.3 million to acquire Out West’s assets, including its remaining restaurant operations. The proposed transaction is subject to bankruptcy court approval and potentially higher offers from competing buyers, according to the company’s SEC filing.
Which Outback Steakhouse locations have recently closed?
Out West closed 10 restaurants between October 11 and 25, according to Fast Company. The franchisee said the restaurants were operating at a loss or generating insufficient revenue to cover occupancy expenses.
The closures affected four states:
- Arizona: Tucson and Mesa
- California: Buena Park, Valencia and Foothill Ranch
- Colorado: Colorado Springs, Highlands Ranch, Aurora and Littleton
- Nevada: Reno
The 10 closed restaurants are excluded from the proposed acquisition of Bloomin’ Brands. Out West also closed three underperforming locations earlier in 2026, Fast Company reported.
USA TODAY reached out to Out West Restaurant Group and Bloomin’ Brands for comment.
Why did the Outback Steakhouse franchisee file for bankruptcy?
Out West’s financial woes date back to 2018, when declining restaurant traffic began to affect its revenue, according to The Independent. The pandemic further weakened the company, with revenue down about 35% in 2020, according to court documents cited by the publication.
The franchisee also highlighted rising food and labor expenses, including state and local minimum wage increases in California, where more than half of its employees work, Bloomberg reported.
The company’s debt rose to about $449 million, from $269 million at the end of 2020, according to Bloomberg.
What happens to the remaining Outback Steakhouse restaurants?
Out West intends to continue operating its remaining restaurants during the bankruptcy proceedings, according to Bloomin’ Brands’ filing with the SEC.
Bloomin’ Brands also agreed to provide up to $5.5 million in interest-free debtor-in-possession financing to help support the franchisee’s operations. Any financing drawn down would reduce the proposed purchase price.
The company is expected to serve as the first bidder in the court-supervised sale. This means that its offer establishes a starting point that other potential buyers can try to surpass.
Outback Steakhouse itself has not filed for bankruptcy. As of June 2026, the chain had approximately 659 restaurants in the United States, including 544 company-operated locations and 115 franchised restaurants, according to Bloomberg.
If the acquisition is approved, Bloomin’ Brands would take direct control of Outback’s remaining restaurants, which could allow it to own more than half of Outback’s franchise locations in the United States.
Bloomin’ Brands also owns Carrabba’s Italian Grill, Bonefish Grill and Fleming’s Prime Steakhouse & Wine Bar.
Reporter Anthony Thompson can be reached at ajthompson@usatodayco.com or on X @athompsonUSAT
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