From Nation's Restaurant News · · 1m 40s
Out West files bankruptcy as Outback parent Bloomin' Brands eyes acquisition
Out West Restaurant Group, a 61-unit Outback Steakhouse franchisee, filed for Chapter 11 bankruptcy and is set to be acquired by Bloomin' Brands.
In brief
Out West Restaurant Group, a 61-unit Outback Steakhouse franchisee, filed for Chapter 11 bankruptcy and is set to be acquired by Bloomin' Brands. Out West Restaurant Group, a 61-unit Outback Steakhouse franchisee, filed for Chapter 11 bankruptcy and is set to be acquired by Bloomin' Brands. Originally reported by…
Out West files bankruptcy
Out West Restaurant Group, a 61-unit Outback Steakhouse franchisee, filed for Chapter 11 bankruptcy in Delaware court.
Bloomin' Brands eyes acquisition
Bloomin' Brands, Outback's parent company, expects to be named the stalking-horse bidder for Out West's assets.
Out West's financials
Out West reported between $10 million and $50 million in assets and liabilities in its bankruptcy filing.
Key creditors
Out West's largest unsecured creditors are Performance Food Group with over $4 million and Matern Law Group with over $1.6 million.
Out West's history
Founded in 1992 as T-Bird Restaurant Group, Out West became Bloomin' Brands' first franchisee and helped bring Outback to the West Coast.
Acquisition details
Bloomin' Brands is providing $5.5 million in debtor-in-possession financing and a $26.3 million bid to acquire Out West's assets.
Purchase price adjustments
The $26.3 million bid could increase by up to $6.1 million if vendor liabilities exceed $6.1 million at closing.
Out West's role
Out West was the largest Outback franchisee with 100 locations before rebranding as Cerca Trova Restaurant Concepts in 2018.
Outback's turnaround
Outback has shown recent sales growth with 1.4% same-store sales rise and 2.8% traffic decline in the last quarter.
Bloomin' Brands' response
Bloomin' Brands called the bankruptcy an 'isolated incident' that will not affect corporate operations or financing.
The main idea
Out West Restaurant Group, a 61-unit Outback Steakhouse franchisee, filed for Chapter 11 bankruptcy and is set to be acquired by Bloomin' Brands.
