Bloomin' Brands announced it has entered into a "stalking horse" Asset Purchase Agreement to acquire the assets of its franchisee, Out West Restaurant Group, which operates 61 Outback Steakhouse locations. The franchisee filed for Chapter 11 bankruptcy protection on November 2, 2026. Bloomin' Brands will also provide financing to ensure the restaurants continue to operate without disruption during the court-supervised sale process.
Key Details
- Stalking Horse Bid: The agreement includes a purchase price of $26.3 million plus the assumption of certain liabilities (e.g., leases, gift cards) for substantially all of the franchisee's assets. The price is subject to certain adjustments.
- DIP Financing: Bloomin' Brands has agreed to provide up to $5.5 million in debtor-in-possession (DIP) financing to support the franchisee's day-to-day operations during the bankruptcy case.
- Process & Timeline: The acquisition is subject to a competitive bidding process and approval by the bankruptcy court. The outside closing date for the transaction is January 31, 2027.