The company that runs dozens of Outback Steakhouse restaurants across the West, including Nevada, has filed for Chapter 11 bankruptcy, and Outback’s own parent company has lined up to buy all of them. Here is what the filing says and what it does (and doesn’t) mean if you eat at Outback in Las Vegas.
Key Takeaways
- Out West Restaurant Group, a San Diego-based franchisee with 61 Outback Steakhouse restaurants in California, Arizona, Colorado, Nevada and New Mexico, filed for Chapter 11 on Nov. 2.
- Bloomin’ Brands, Outback’s parent company, bid about $26.3 million for the company’s assets as the lead “stalking-horse” bidder and is providing up to $5.5 million in financing during the case.
- The franchisee says its restaurants will stay open during the bankruptcy, and Bloomin’ would take on obligations including unredeemed gift cards if its bid wins.
- The filings list nearly $320 million in secured debt.
How the franchisee got here
According to the bankruptcy filings as reported by Restaurant Business and Inc., Out West borrowed heavily to expand in the mid-to-late 2010s, including buying 45 corporate Outback locations in Arizona, Nevada, Colorado and New Mexico in 2017. Falling traffic and rising costs left it unable to keep up with its debt by the end of 2018. The pandemic then cut revenue by 35%, which the filings say “fatally undermined” the business. The company missed loan payments due in April 2022, operated under forbearance agreements after that, and tried and failed to sell itself four times. It had already closed 10 restaurants before the filing, including three this year.
The Bloomin’ Brands deal
Bloomin’ Brands has agreed to buy Out West’s assets for roughly $26.3 million. As the stalking-horse bidder, its offer sets the floor in a court-supervised auction, so another buyer could still top it. Bloomin’ has called the filing an isolated incident that won’t affect its corporate operations. Some headlines this weekend said more than 60 Outbacks would close, but the filings describe a plan to sell the restaurants, not shut them, and the company says all locations remain open while the case plays out.
What it means for locals and visitors
Nevada is one of the five states in the franchisee’s footprint, though the reports we reviewed don’t list which individual Las Vegas-area locations it operates. For diners, the practical takeaways are simple: the company says the restaurants stay open during the case, and if Bloomin’ wins the auction it would assume the gift card liabilities. For the restaurants’ workers, a sale to the brand’s own parent company is generally a steadier outcome than a liquidation. We’ll update if specific Southern Nevada closures are announced. This is business news only, not investment advice.
Coming to Vegas? Practice craps, roulette, blackjack, baccarat and slots for free on our casino simulator before you play for real.
Leave a Reply