Outback Steakhouse Closes 10 Locations as Major Franchisee Files for Bankruptcy

A major Outback Steakhouse franchisee has shut down 10 restaurants across four states and filed for Chapter 11 bankruptcy protection, the latest fallout from parent company Bloomin' Brands' long turnaround of the casual dining chain.

Cerca Trova Restaurant Group Holdings, which operates as Out West Restaurant Group, sought bankruptcy protection in the United States Bankruptcy Court for the District of Delaware on Monday. The San Diego-based company, which employs around 3,669 workers, operates 61 Outback Steakhouse restaurants across Arizona, California, Colorado, Nevada and New Mexico.

Court records show the franchisee filed a motion the same day to reject the leases on 10 restaurant locations it had closed between October 11 and October 25. The closures span Arizona, California, Colorado and Nevada: two in the Tucson and Mesa area of Arizona; three in California, in Buena Park, Valencia and Foothill Ranch; four in Colorado, in Colorado Springs, Highlands Ranch, Aurora and Littleton; and one in Reno, Nevada. The franchisee had previously closed three underperforming locations earlier this year, bringing its total closures in 2026 to 13.

On November 1, Bloomin' Brands entered into a purchase agreement to acquire all of Cerca Trova's assets for $26.3 million, subject to competing higher offers. The majority of Outback Steakhouse locations are already company-owned, and the deal would bring the franchisee's remaining restaurants under Bloomin' Brands' direct control, subject to bankruptcy court approval.

Outback Steakhouse itself has not filed for bankruptcy, and there are currently no announced plans for a nationwide shutdown. The chain had more than 660 U.S. restaurants as of the end of last year, according to Bloomin' Brands, which has been closing underperforming locations as part of a multi-year turnaround strategy focused on Outback.

Bloomin' Brands did not say whether it plans to reopen any of the recently closed locations. The company's remaining franchised restaurants are expected to continue operating while the restructuring unfolds.