CALIFORNIA - Cerca Trova Restaurant Group Holdings—operating as Out West Restaurant Group and once the largest domestic franchisee of Outback Steakhouse—officially filed for Chapter 11 bankruptcy protection in Delaware on November 2, 2026.
The San Diego-based management company cited years of growing financial pressures as the primary driver behind the filing. Specifically, the group pointed to pandemic-era cost inflation, rising food expenses, and the financial strain of California's minimum wage laws.
A Shrinking Footprint and Surging Debt
At its peak in 2018, Cerca Trova operated 99 Outback Steakhouse locations across the western United States. By the time it filed for bankruptcy, that footprint had contracted sharply to just 61restaurants across California, Arizona, Nevada, Colorado, and New Mexico.
According to court filings, the business's financial strain accelerated rapidly over the last few years. Cerca Trova's debt reportedly surged from $269 million in late 2020 to approximately $449 million just before seeking Chapter 11 protection.
Bloomin' Brands Steps In to Acquire Assets
Despite the bankruptcy filing, diners at the affected locations likely will not notice an immediate disruption in service. Bloomin’ Brands, the corporate parent and franchisor of Outback Steakhouse, has already moved to secure the situation.
On November 1, just ahead of the filing, Bloomin' Brands entered into a stalking horse Asset Purchase Agreement. The parent company intends to acquire nearly all of Out West's assets for a base price of $26.3 million. Additionally, Bloomin' Brands agreed to provide up to $5.5 million in debtor-in-possession financing to keep operations functioning properly while the case moves through bankruptcy court.
A statement within the filing confirmed to customers and staff that "The Chapter 11 Filing has no immediate impact on any Out West or Company-owned Outback Steakhouse guests, restaurant Team Members, or day-to-day operations."