Outback Steakhouse franchisee files for bankruptcy, shutters 10 locations

Cerca Trova Restaurant Group Holdings, which operates 61 Outback Steakhouse locations, filed for Chapter 11 bankruptcy protection in Delaware this week. The move follows a series of financial challenges dating back to 2018, exacerbated by declining customer traffic and rising labor and production costs.

Between October 11 and October 25, the San Diego-based operator closed 10 restaurants in Arizona, California, Colorado, and Nevada. Court documents reveal these locations were consistently operating at a loss, and the company has filed a motion to reject the associated leases. These specific sites are not included in the company's proposed asset sale.

Bloomin' Brands, the parent company of Outback Steakhouse, has entered into an agreement to acquire Cerca Trova’s assets for $26.3 million. The offer remains subject to higher competing bids in court. Most Outback Steakhouse locations in the United States are currently company-owned, and it remains unclear if Bloomin' Brands intends to reopen the shuttered sites.