---
title: "A 61-unit Outback Steakhouse franchisee files for bankruptcy"
url: https://burnaze.com/article/92e22774-8d4d-4d93-b58b-e3a0ede847b0
source: "Nation's Restaurant News"
original_url: https://www.nrn.com/casual-dining/a-61-unit-outback-steakhouse-franchisee-files-for-bankruptcy
author: "Joe Guszkowski"
category: "Casual dining"
industry: "Restaurants"
segment: "Casual dining"
topics: ["Finance & M&A","Regulation & legal"]
published: 2026-11-02T16:07:37.000Z
modified: 2026-11-02T18:03:08.154Z
image: https://eu-images.contentstack.com/v3/assets/bltea7aee2fca050a19/blt093823c9b2404267/69fb8b66ce7a038f4b434192/outbacksteak.jpg?disable=upscale&width=1200&height=630&fit=crop
---

# A 61-unit Outback Steakhouse franchisee files for bankruptcy

**TL;DR:** A 61-unit Outback Steakhouse franchisee has filed for Chapter 11 bankruptcy, with Outback parent Bloomin' Brands set to acquire the locations.

*By Joe Guszkowski, originally published in Nation's Restaurant News on 2026-11-02. [Read the original](https://www.nrn.com/casual-dining/a-61-unit-outback-steakhouse-franchisee-files-for-bankruptcy).*

## Story

A large Outback Steakhouse franchisee has filed for Chapter 11 bankruptcy, and the franchisor is already in line to buy it.

San Diego-based Out West Restaurant Group operates 61 Outback Steakhouse restaurants in five Western states. It reported between $10 million and $50 million in both assets and liabilities in a Delaware court filing Monday.

Outback parent Bloomin’ Brands is working to acquire the bankrupt locations and said it expects to be named the stalking-horse bidder in the case, meaning its bid would set the floor for future offers.

Out West’s initial filing did not provide details on what led up to the bankruptcy. It listed the company’s largest unsecured creditors as Performance Food Group, with a claim of more than $4 million, and Matern Law Group, with a claim of more than $1.6 million.

Out West's restaurants will remain open for business during the proceedings.

Out West has played an important role in Outback’s history. Founded in 1992 as T-Bird Restaurant Group, it became Bloomin’s first franchisee and helped bring Florida-based Outback to the West Coast.

In 2015, T-Bird was acquired by private-equity firm H.I.G. Capital. Two years later, it acquired 45 corporate Outback locations in Arizona, Nevada, Colorado, and New Mexico and rebranded as Cerca Trova Restaurant Concepts. In 2018, the new group was renamed Out West Restaurant Group.

The group once operated as many as 100 Outback locations and appears to be the brand’s largest franchisee. According to Technomic, just 116 of Outback’s more than 1,000 global locations were franchised as of last year.

That number would drop significantly if Bloomin' buys Out West. The company is providing $5.5 million in debtor-in-possession (DIP) financing to help fund Out West’s operations through the bankruptcy process, and has also entered a bid of $26.3 million, with some stipulations, to acquire its assets.

The $26.3 million price would be reduced by however much Out West owes on the DIP facility. It could also increase depending on the status of certain vendor liabilities at closing. If these liabilities are less than $6.1 million, the purchase price would increase dollar-for-dollar by the shortfall amount. If they are $6.1 million or higher, there would be no change to the purchase price. Bloomin’ would also assume certain other liabilities, including lease obligations and unredeemed gift cards.

In a statement, Bloomin' called the bankruptcy an “isolated incident” that will not affect corporate operations or financing. NRN has reached out to H.I.G. and an attorney for Out West for comment.

Tampa, Florida-based Outback Steakhouse has been showing signs of a turnaround recently after several years of sales and traffic challenges. It has been working to improve its food quality, marketing, and service behind a $75 million investment from Bloomin’.

During the quarter ended June 28, Outback’s same-store sales rose 1.4%, their highest mark since the first quarter of 2023, while traffic was down 2.8%. Those results reflect only company-owned restaurants.

## Entities

- Restaurants (sector)
- franchising (topic)
- Nation's Restaurant News (publication)
- acquisition (topic)
- bankruptcy (topic)
- Bloomin' Brands (company)
- Joe Guszkowski (person)
- Outback Steakhouse (company)

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Originally reported by Joe Guszkowski, Nation's Restaurant News (https://www.nrn.com/casual-dining/a-61-unit-outback-steakhouse-franchisee-files-for-bankruptcy). Summarized by Burnaze (https://burnaze.com/article/92e22774-8d4d-4d93-b58b-e3a0ede847b0).