# Outback Steakhouse Franchisee Files Bankruptcy

> Outback Steakhouse’s largest franchisee filed for bankruptcy as parent company moves to buy all 61 restaurants.
- Title: Outback Steakhouse Franchisee Files Bankruptcy · Inc
- Summary: Outback Steakhouse’s largest franchisee filed for bankruptcy as parent company moves to buy all 61 restaurants.
- Keywords: outback steakhouse, bloomin brands, chapter 11 bankruptcy, franchisee, 61 restaurants, debtor-in-possession financing, secured debt, Inc
- Source: Inc — https://inc.com/kevin-haynes/outback-largest-franchisee-filed-bankruptcy-now-parent-wants-all-restaurants/91430392
- Read time: 1 min
- Topics: outback steakhouse, bloomin brands, chapter 11 bankruptcy, franchisee, 61 restaurants, debtor-in-possession financing, secured debt
## 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.
## Key takeaway

Outback Steakhouse’s largest franchisee filed for Chapter 11 bankruptcy, prompting Bloomin’ Brands to bid $26.3 million for all 61 restaurants.