Outback Steakhouse has closed 10 locations across four states as its franchisee, Out West Restaurant Group, files for Chapter 11 bankruptcy, raising concerns about the chain’s future.
Outback Steakhouse has recently made headlines as it closed 10 restaurants across four states in the U.S. This development comes after its franchisee, Out West Restaurant Group, filed for Chapter 11 bankruptcy protection. For patrons planning their next visit to the popular steakhouse chain, the question looms: could their local Outback be next on the chopping block?
It is crucial to note that Outback Steakhouse itself has not filed for bankruptcy. The situation involves Out West Restaurant Group, an independent franchisee that operated 61 Outback locations primarily in the western United States. The closures, which occurred between October 11 and October 25, 2026, preceded Out West’s bankruptcy filing on November 2.
Court documents, as reported by Fast Company, indicate that the franchisee made the decision to close these restaurants due to financial losses and insufficient revenue to cover occupancy costs. Consequently, Out West requested the bankruptcy court to reject the leases for the shuttered locations.
The closures are not indicative of a nationwide shutdown by Outback Steakhouse. Instead, they pertain specifically to restaurants operated by Out West Restaurant Group, and these 10 locations are excluded from the proposed sale of the franchisee’s remaining assets.
The following Outback Steakhouse locations permanently closed in October 2026:
Arizona:
4871 East Grant Road, Tucson
1860 East McKellips Road, Mesa
California:
7575 Beach Boulevard, Buena Park
25261 North The Old Road, Valencia
26652 Portola Parkway, Foothill Ranch
Colorado:
7065 Commerce Center Drive, Colorado Springs
15 West Springer Drive, Highlands Ranch
2066 South Abilene Street, Aurora
8601 West Cross Drive, Littleton
Nevada:
3645 South Virginia Street, Reno
These closures are not part of the proposed acquisition agreement between Out West Restaurant Group and Bloomin’ Brands, Outback Steakhouse’s parent company.
Following the closures, Out West Restaurant Group filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware on November 2. The San Diego-based company operates under the name Cerca Trova Restaurant Group Holdings and was responsible for 61 Outback locations across California, Arizona, Colorado, Nevada, and New Mexico at the time of the filing.
The Chapter 11 process allows Out West to restructure its finances under court supervision while continuing its operations. Bloomin’ Brands has stated that the bankruptcy filing will not have an immediate impact on guests, employees, or daily operations at either Out West or company-owned Outback restaurants.
In a proactive move, Bloomin’ Brands has entered into an agreement to purchase substantially all of Out West’s assets for a proposed price of $26.3 million. However, this agreement is subject to bankruptcy court approval and may attract higher or better competing bids. Additionally, Bloomin’ Brands has agreed to provide up to $5.5 million in financing to support the franchisee during the bankruptcy proceedings.
This proposed acquisition could bring the remaining 61 restaurants under the direct control of Bloomin’ Brands, which aims to stabilize operations, support employees, and minimize disruption for customers.
Despite the recent turmoil, Outback Steakhouse is not going out of business. The bankruptcy filing pertains solely to Out West Restaurant Group, an independently owned franchise operator. Bloomin’ Brands continues to manage hundreds of company-owned Outback restaurants across the United States, and the remaining 61 locations intend to maintain their day-to-day operations during the bankruptcy process.
While the bankruptcy has raised questions about the future of the remaining restaurants, there is currently no confirmed information regarding additional closures. Out West has faced financial challenges for several years, including rising operating expenses and declining customer traffic, which have pressured profitability. Earlier in 2026, the franchisee had already closed three other restaurants before the recent 10 closures.
The proposed purchase by Bloomin’ Brands could help stabilize the remaining business, but the final outcome will depend on the bankruptcy proceedings and the approval of the asset sale. Competing offers could also emerge, potentially altering the landscape.
For now, customers should verify the status of their local Outback Steakhouse before visiting, rather than assuming that all locations are at risk of closure.
As the bankruptcy case progresses, Out West Restaurant Group will continue operating under Chapter 11 while the court reviews its restructuring plan and proposed asset sale. Bloomin’ Brands is set to remain the lead bidder unless a qualified buyer presents a higher offer. The purchase agreement has set January 31, 2027, as the outside closing date, although this may be extended.
Until the court approves the sale and the transaction is finalized, the 61 remaining franchise-operated restaurants are expected to continue serving customers. However, the 10 locations that closed in October are not included in the proposed acquisition deal.
For further details, customers may want to stay informed about developments regarding Outback Steakhouse and its franchise operations, especially as the situation evolves.
According to Fast Company, the future of the Outback Steakhouse brand remains uncertain as it navigates these challenges.