Out West Restaurant Group, a major Outback Steakhouse franchisee, filed for Chapter 11 protection in Delaware on Monday. On Nov. 3, Fox Business reported that parent Bloomin’ Brands had agreed to buy 61 of its restaurants for about $26.3 million and to serve as the opening bidder in a court-supervised sale.
The restaurants are in California, Arizona, Nevada, Colorado and New Mexico. The price can be adjusted, specified liabilities would be assumed, and another buyer can still bid more. A bankruptcy judge has to approve any deal. Bloomin’ also offered up to $5.5 million of interest-free financing to keep the restaurants operating during the case, subject to that approval.
Bloomin’ said customers, employees and daily service should see no immediate change. These are franchise locations, not the company’s corporate-owned Outbacks. No menu-price change was announced. The local stake is whether those western kitchens keep their staff and stay open once the auction ends.
Will the 61 restaurants close or charge more now? Neither step was announced. The verified facts are Monday’s bankruptcy filing and a $26.3 million opening bid, with operations expected to continue while the court reviews a sale.