business
Outback Steakhouse franchisee Out West files for Chapter 11 bankruptcy
Bloomin' Brands to buy 61 restaurants from Outback franchisee Out West after it files for Chapter 11 bankruptcy.
Key points
- Out West Restaurant Group filed for Chapter 11 bankruptcy protection in Delaware on Monday, according to an SEC filing.
- Bloomin' Brands agreed to purchase Out West's assets for approximately $26.3 million, subject to adjustments and specified liabilities.
- Bloomin' Brands said the filing would have no immediate impact on customers, restaurant employees or daily operations.
Why it matters. Bloomin' Brands' offer is an initial bid that other potential buyers can seek to exceed, and the transaction remains subject to bankruptcy court approval.
Bloomin' Brands agreed to buy assets of Out West Restaurant Group, which runs 61 restaurants in the western United States, for approximately $26.3 million after the franchisee filed for Chapter 11 in Delaware on Monday. The sale needs bankruptcy court approval, and Bloomin' Brands would serve as the stalking-horse bidder. It also agreed to provide up to $5.5 million in interest-free financing during the case.
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Outback Steakhouse franchisee Out West files for Chapter 11 bankruptcy
Out West Restaurant Group, a franchisee operating Outback Steakhouse locations across the western United States, filed for Chapter 11 bankruptcy protection in Delaware on Monday. The filing was disclosed in documents submitted to the Securities and Exchange Commission. Outback parent Bloomin' Brands has agreed to acquire the assets of Out West, which include 61 restaurants, for approximately $26.3 million. The deal would bring those locations under the direct control of the parent company. Chapter 11 allows a business to reorganise under court supervision while it continues operating, and the agreement is subject to the bankruptcy process.