
BLMN$10.90▲ 3.1%Outback's owner eased a franchisee's fees for almost six years. Now it's the bidder
Out West, which runs 61 Outback Steakhouses, filed for bankruptcy on Nov. 2, and Bloomin' Brands bid $26.3 million for them. Bloomin's reports show Out West ran about 90 Outbacks when its fee relief began in 2020.
KeyVex News··5 min readFact-checked against 10 public records
KeyVex News··5 min readFact-checked against 10 public records
BLMN$10.90▲ 3.1%Close, Nov. 2. Prices from Tiingo.The short versionTap to readTap to close
- A franchisee normally pays the brand's owner royalties and fees and carries its own restaurants' costs. Out West fell behind on those payments in 2020, when Covid shut dining rooms.
- Bloomin' did not end the franchise. It waived some fees, put others off, cut Out West's advertising fee and extended the deal in 2023. Out West ran fewer Outbacks in every report.
- Out West ran 71 Outbacks in August; Bloomin' had 115 franchised U.S. Outbacks in June. Bloomin's bid would make its 61 restaurants Bloomin's own, with their future lease payments. Others can still top it.
- Bloomin' has also offered to lend Out West up to $5.5 million, interest-free. Whatever Out West borrows comes off the price. The deal must close by Jan. 31, 2027, unless extended.
The filing: Out West Restaurant Group, which runs 61 Outback Steakhouses in the western U.S., filed for Chapter 11 bankruptcy in Delaware on Nov. 2, Outback's owner, Bloomin' Brands, said in a filing that morning.8-KCourt In Chapter 11, a company keeps operating while it reorganizes or sells itself under a court's watch. Bloomin' agreed the day before to buy substantially all of Out West's assets for $26.3 million. It signed on as the "stalking horse," a role the court must approve: the first bid, which others in a court-run sale must beat.8-K
The history: The bankruptcy follows almost six years of deals that put off what Out West owed. In December 2020, Bloomin' said, Out West was in default on what it owed Bloomin' under its franchise agreements, and on its loans.10-K Bloomin' agreed not to call on the franchise defaults while the deal ran. It waived some fees, deferred others and cut Out West's advertising fee to 2.25% of sales. Out West ran about 90 Outbacks then.10-K It was replaced at the end of 2023 by an amended version running to Dec. 27, 2026.10-K
The scale: Bloomin' said in August that Out West ran 71 Outbacks. Bloomin' counted 115 franchised U.S. Outbacks on June 28, so Out West ran more than six in ten.10-Q Bloomin' is now offering to lend to Out West in bankruptcy, and it is bidding for its restaurants.10-K8-K
Bloomin' Brands' stock and the Out West filingsDaily close, Nov. 3, 2025 to Nov. 2, 2026 ▲ 61.2%Show chartHide chart
Six years of putting off payments
The 2020 deal came as Covid shut dining rooms. Bloomin' permanently waived Out West's royalty and advertising fees from Feb. 24 to July 26, 2020, and deferred those owed through Nov. 22, 2020.10-K It let Out West close four restaurants, and up to 10 more in the deal's first year, without penalties.10-K
For a while, money came back. In 2021 Bloomin' collected Out West's monthly fees plus $5.1 million of the past-due amounts.10-K In the last three months of 2022, it did not collect $3.0 million of royalties. That was more than Out West's available cash, as calculated under its lenders' forbearance agreement.10-K
The 2020 deal also said what would happen if a sale of Out West ended it. The sale money would be split between Bloomin' and the lenders in an agreed order, and then:
if the sales proceeds are insufficient to satisfy the deferred balance due to the Company, then the Company agreed to permanently waive any remaining deferred balance due to the Company.
Bloomin's 2023 annual report says the new version "amends and supersedes" the 2020 deal and that its terms are "materially consistent" with it. Neither that report nor any annual report since repeats the waiver sentence.10-K When the deal ends, the 2025 report says, the deferred amounts come due, "which include substantial amounts due to Out West's lenders." The lenders are first in line.10-K8-K10-K
View the data
| Bloomin' filing | Outback restaurants Out West runs (count) | Note |
|---|---|---|
| Dec. 2020 | 90 | "Approximately 90" when the first forbearance deal was signed, Dec. 27, 2020 (2020 annual report) |
| Dec. 2021 | 80 | "Approximately 80" as of Dec. 26, 2021 (2021 annual report) |
| Dec. 2022 | 79 | As of Dec. 25, 2022 (2022 annual report) |
| Feb. 2024 | 78 | 2023 annual report, filed Feb. 28, 2024 |
| Feb. 2025 | 75 | 2024 annual report, filed Feb. 26, 2025 |
| Feb. 2026 | 74 | 2025 annual report, filed Feb. 25, 2026 |
| May 2026 | 72 | First-quarter report, filed May 7, 2026 |
| Aug. 2026 | 71 | Second-quarter report, filed Aug. 6, 2026 |
| Nov. 2026 | 61 | The Nov. 2, 2026 filing on the bankruptcy |
The 2020 and 2021 figures are "approximately" in the filings. Sources: Bloomin' Brands annual reports for 2020 through 2025, its 10-Qs for the first two quarters of 2026, and its Nov. 2, 2026 8-K.202020212022202320242025Q1Q28-K
In 2026, the lenders sent a default notice
After March 29, Bloomin' said, the agent for Out West's senior lenders sent notice that Out West was in default of its loan and forbearance agreements.10-Q By its August report, the lenders had not acted on the notice, and Out West was current as of June 28 on its royalties and fees to Bloomin'. Bloomin' said it could not predict the outcome or what the parties might consider, which "could include a court-supervised process."10-Q
Between that August report and the Nov. 2 filing, Out West's count fell from 71 Outbacks to 61. The 2023 deal with Bloomin' ends automatically on a bankruptcy filing, the 8-K says, but the filing put that on hold. The two sides' rights under it, and under Out West's franchise agreement, are to be resolved in the Chapter 11 case.10-Q8-K
What Bloomin' is offering
The $26.3 million comes down by whatever Out West borrows from Bloomin' in the meantime. Bloomin' would also take on leases for future periods, unredeemed gift cards and some vendor bills.8-K If those vendor bills come to less than $6.1 million, the price rises by the difference.8-K
The loan is up to $5.5 million, and it carries no interest. Out West can draw $1.5 million once the court gives interim approval, the rest after final approval.8-K The court held its first hearing in the case on Nov. 3; as of 6:30 p.m. Eastern that day, no order on the loan had been posted to the docket.Court Out West intends to keep paying Bloomin' its fees and royalties after the filing, and rent on leases Bloomin' guarantees, Bloomin' said.8-K
Another bidder can still win. If one tops Bloomin's offer, Bloomin' gets a break-up fee; the filing doesn't give its size.8-K Out West intends to keep running its restaurants day to day during the case, the filing says. Fox Business reported the same, citing the filing.8-KFox Business
What Bloomin' says it gets, and what it warns
Owning the restaurants gives Bloomin' "direct operational insight," it said, and lets it invest in them and limit disruption to guests and employees. It said it wants a deal "that seeks to preserve the continued operation of the restaurants."8-K
The same filing warns that there can be "no assurances" the bankruptcy and the sale will not hurt Bloomin's reputation, results, cash flows or financial condition. It also says Bloomin' may not succeed in buying the assets.8-K
Bloomin's filings describe deferred amounts and who gets paid first. None of its annual reports since 2020, nor its 2026 quarterly reports, gives a total for what Out West owes Bloomin'.10-K10-Q8-K
What to watch
Bloomin' reports third-quarter results before the open. The purchase agreement is to be filed with its coming 10-Q for that quarter.Announcement8-K
The last day Out West may use its cash from operations, unless its lenders extend the date. Bloomin's loan ends then unless a sale has closed.
The date by which Bloomin's purchase agreement must close, unless it is extended.
The paper trail
Bloomin' Brands filings on Out West, Feb. 2021 through Nov. 2, 2026. Times are when EDGAR accepted the filing, Eastern.
| Filed (ET) | Form | Filer | What it shows |
|---|---|---|---|
| Feb. 24, 2021, 4:07 p.m. | 10-K | Bloomin' Brands | Out West, about 90 Outbacks, was in default; the Dec. 27, 2020 forbearance deal waives and defers fees. |
| Feb. 2022 | 10-K | Bloomin' Brands | About 80 Outbacks. $5.1 million of past-due amounts collected in 2021. |
| Feb. 22, 2023, 4:08 p.m. | 10-K | Bloomin' Brands | 79 Outbacks. $3.0 million of royalties not collected in the fourth quarter of 2022. |
| Feb. 28, 2024 | 10-K | Bloomin' Brands | 78 Outbacks. The deal is renewed, effective Dec. 31, 2023, to Dec. 27, 2026. |
| Feb. 26, 2025 | 10-K | Bloomin' Brands | 75 Outbacks. |
| Feb. 25, 2026, 4:06 p.m. | 10-K | Bloomin' Brands | 74 Outbacks. Deferred amounts come due when the deal ends, lenders first. |
| May 7, 2026, 4:07 p.m. | 10-Q | Bloomin' Brands | 72 Outbacks. Out West's senior lenders send a default notice. |
| Aug. 6, 2026, 4:06 p.m. | 10-Q | Bloomin' Brands | 71 Outbacks, of 115 franchised in the U.S. Out West is current with Bloomin'. |
| Nov. 2, 2026, 8:30 a.m. | 8-K | Bloomin' Brands | Out West files for Chapter 11 with 61 Outbacks. Bloomin' bids $26.3 million and offers a $5.5 million loan. |
Sources
14 sources, 10 of them public records
Public records
- Bloomin' Brands, Inc., Form 8-K: Out West bankruptcy, stalking-horse asset purchase agreement and DIP financingSEC EDGAR · Nov. 2, 2026
- In re Cerca Trova Restaurant Group Holdings, Inc., et al., Case No. 26-11749 (CTG): case informationU.S. Bankruptcy Court, District of Delaware, via Stretto · Nov. 2, 2026
- Bloomin' Brands, Inc., Form 10-Q for the quarter ended June 28, 2026SEC EDGAR · Aug. 6, 2026
- Bloomin' Brands, Inc., Form 10-Q for the quarter ended March 29, 2026SEC EDGAR · May 7, 2026
- Bloomin' Brands, Inc., Form 10-K for fiscal 2025SEC EDGAR · Feb. 25, 2026
- Bloomin' Brands, Inc., Form 10-K for fiscal 2024SEC EDGAR · Feb. 26, 2025
- Bloomin' Brands, Inc., Form 10-K for fiscal 2023SEC EDGAR · Feb. 28, 2024
- Bloomin' Brands, Inc., Form 10-K for fiscal 2022SEC EDGAR · Feb. 22, 2023
- Bloomin' Brands, Inc., Form 10-K for fiscal 2021SEC EDGAR · Feb. 23, 2022
- Bloomin' Brands, Inc., Form 10-K for fiscal 2020SEC EDGAR · Feb. 24, 2021
Reporting
- "Bloomin' Brands moves to buy 61 Outback Steakhouse restaurants after franchisee bankruptcy"Fox Business · Nov. 3, 2026
- "Bloomin' Brands, Inc. to Host Fiscal 2026 Third Quarter Earnings Conference Call at 8:00 AM ET on November 6, 2026" (company release, as reposted)Finviz · Oct. 16, 2026
Data
- End-of-day prices for BLMN, and for SPY and QQQ on the chart (Tiingo)KeyVex · through Nov. 2, 2026
- The chart's Filings layer: KeyVex's Congress trade, insider trade, Form 144, 8-K and lobbying records for BLMNKeyVex · through Nov. 2, 2026
How we got these numbers
- Restaurant counts are as each Bloomin' filing states them: "approximately" 90 and 80 in the 2020 and 2021 annual reports, exact figures after that. Annual reports give the count as of the filing ("currently operate") or as of year-end, as noted in the chart's table.
- The share of franchised U.S. Outbacks is 71 divided by the 115 franchised U.S. Outback Steakhouse restaurants in Bloomin's June 28, 2026 10-Q.
- Prices are end-of-day closes as traded, not adjusted for dividends. Daily moves are close to close. The S&P 500 and Nasdaq 100 lines follow SPY and QQQ, rebased. The Filings switch shows the filing markers from KeyVex's Bloomin' stock page, a selection of congressional trades, insider sales, Form 144 notices, 8-Ks and lobbying filings: not every filing, and not only those tied to this story.
- The bankruptcy court's first-day filings were not used: the case site's documents refused scripted requests, and KeyVex does not get around such blocks. Facts reported only from those papers are left out.




