From Inc · · 1m 10s
Outback Steakhouse Franchisee Files Bankruptcy
Outback Steakhouse’s largest franchisee filed for bankruptcy as parent company moves to buy all 61 restaurants.
In brief
Outback Steakhouse’s largest franchisee filed for bankruptcy as parent company moves to buy all 61 restaurants. Outback Steakhouse’s largest franchisee filed for Chapter 11 bankruptcy, prompting Bloomin’ Brands to bid $26.3 million for all 61 restaurants. Originally reported by Inc.
Outback Steakhouse Franchisee Files Bankruptcy
Outback Steakhouse’s largest franchisee filed for Chapter 11 bankruptcy protection on Monday.
Parent Company Steps In
Bloomin’ Brands agreed to pay $26.3 million for all 61 restaurants operated by the franchisee.
Debt and Bankruptcy Details
The company took on debt during the mid- to late 2010s for expansion and faced declining customer traffic by 2018.
Financial Deterioration
Out West accumulated nearly $320 million in secured debt after pandemic revenue dropped 35 percent.
Bankruptcy Proceedings
All 61 restaurants remain open during bankruptcy with up to $5.5 million in debtor-in-possession financing.
Parent Company Statement
Bloomin’ Brands says the situation is isolated and does not affect its corporate operations or liquidity.
Bankruptcy Timeline
Out West filed for Chapter 11 in Delaware after years of financial pressure and pandemic impact.
Bankruptcy Outcome
Bloomin’ Brands will serve as lead bidder to acquire Out West’s assets and support operational continuity.
The key point
Outback Steakhouse’s largest franchisee filed for Chapter 11 bankruptcy, prompting Bloomin’ Brands to bid $26.3 million for all 61 restaurants.
