Bloomin' Brands, Inc. has announced a pivotal development involving its franchisee, Out West Restaurant Group, which has filed for Chapter 11 bankruptcy. This filing allows Bloomin' to explore the acquisition of Out West's assets while ensuring the continued operation of its restaurants. The situation highlights ongoing challenges in the retail-eating places industry, as companies grapple with financial pressures.

On November 2, 2026, Cerca Trova Restaurant Group Holdings, Inc., operating under the name Out West, filed voluntary petitions for relief under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware. Out West operates 61 Outback Steakhouse restaurants in the western United States. According to the filing, the bankruptcy will not immediately impact the guests, team members, or daily operations of either Out West or Bloomin' Brands.

In its filing, Bloomin' Brands stated, "The Chapter 11 Filing has no immediate impact on any Out West or Company-owned Outback Steakhouse guests, restaurant Team Members, or day-to-day operations." Out West will continue to operate as a "debtor in possession" under the Bankruptcy Court's jurisdiction, seeking customary relief to maintain its business operations, including paying certain prepetition obligations.

To further stabilize the situation, Bloomin' Brands has entered into a "stalking horse" Asset Purchase Agreement with Out West. This agreement, dated November 1, 2026, involves Bloomin' agreeing to purchase substantially all of Out West's assets for a base price of $26.3 million, subject to adjustments based on vendor liabilities. The agreement is designed to give Bloomin' operational insight and allow it to invest in the units, thereby mitigating disruption to guests and employees.

Once approved by the Bankruptcy Court, Bloomin' is expected to be designated as the stalking horse bidder in connection with the asset sale. This sale will follow a Bankruptcy Court-supervised process, where Bloomin's bid may face competition from other bidders. The outside closing date for the asset purchase is set for January 31, 2027, unless extended.

Additionally, Bloomin' Brands has agreed to provide up to $5.5 million in debtor-in-possession financing to Out West, which will be used to cover ordinary operating expenses during the bankruptcy process. This financing will not bear interest and is contingent on Bankruptcy Court approval.

While the filing indicates a proactive approach by Bloomin' Brands to manage the situation, it also acknowledges the uncertainties involved. There are no guarantees regarding the outcome of Out West's bankruptcy proceedings or the potential acquisition of its assets. The filing states, "There can be no assurances regarding the outcome of Out West's bankruptcy proceedings, including whether the Company will successfully acquire the Assets."

As the situation unfolds, Bloomin' Brands is committed to working closely with Out West, its lenders, and other stakeholders to maintain stability in operations and support its team members and guests. The company aims to navigate this challenging period while focusing on its long-term growth and operational goals.

The filing, which can be referenced under accession number 0001546417-26-000039, emphasizes the importance of this development for Bloomin' Brands and the broader retail-eating places industry, which continues to face financial challenges.