Outback Steakhouse Franchisee Out West Restaurant Group Files for Chapter 11, and Bloomin' Brands Moves to Buy Its 61 Restaurants for About $26.3 Million

A major Outback Steakhouse franchisee has filed for bankruptcy, and the chain's parent company wants to take over its restaurants, Fox Business reports.

The filing. Out West Restaurant Group, which runs Outback locations across the western United States, filed for Chapter 11 protection in Delaware on Monday, according to a Securities and Exchange Commission filing cited by Fox Business.

The offer. Bloomin' Brands, Outback's parent, agreed to buy Out West's assets for about $26.3 million, subject to adjustments and to assuming certain liabilities. It is expected to be the "stalking-horse" bidder, meaning it sets the opening offer that other buyers can try to beat. The deal needs bankruptcy court approval. Bloomin' also agreed to provide up to $5.5 million in interest-free financing to keep Out West running during the case, also subject to court approval.

Which restaurants. Fox Business says Bloomin' is moving to acquire 61 restaurants. Out West is affiliated with Cerca Trova Restaurant Group, which has operated Outback restaurants in several western states, including California, Arizona, Nevada, Colorado and New Mexico.

What customers will see. Out West plans to keep its restaurants open throughout the process, the SEC filing says. Bloomin' said the filing would have no immediate impact on customers, restaurant employees or daily operations at the affected locations. The bankruptcy covers restaurants run by the franchisee, not Bloomin's corporate-owned ones. Bloomin' also owns Carrabba's Italian Grill, Bonefish Grill and Fleming's Prime Steakhouse & Wine Bar.

What we could not check. We have not read the SEC filing or the court papers. Fox Business does not say why Out West filed, how much debt it carries or how many jobs are involved, and we did not find a response from Out West.