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Outback Steakhouse franchisee files for bankruptcy
Fox Business • • business
Key Points:
- Bloomin' Brands, parent company of Outback Steakhouse, is set to acquire 61 Outback locations operated by franchisee Out West Restaurant Group, which has filed for Chapter 11 bankruptcy protection.
- The acquisition deal is valued at approximately $26.3 million, subject to adjustments and liabilities, and requires bankruptcy court approval.
- Bloomin' Brands will act as the "stalking-horse" bidder in the bankruptcy sale process and has agreed to provide up to $5.5 million in interest-free debtor-in-possession financing to support Out West during bankruptcy proceedings.
- Out West plans to continue operating its restaurants throughout the bankruptcy process, with no immediate impact expected on customers, employees, or daily operations.
- The acquisition could bring the franchisee-operated Outback locations under Bloomin' Brands' direct control if approved, expanding the company's portfolio alongside its other brands like Carrabba's Italian Grill, Bonefish Grill, and Fleming's Prime Steakhouse & Wine Bar.
