California-Based Outback Steakhouse Operator Behind 61 Locations Files for Bankruptcy

Cerca Trova Restaurant Group Holdings, Inc., a franchisee of Outback Steakhouse restaurants, files for bankruptcy alongside four affiliates.

Written By Twinkle Jha
Representative Image, Cerca Trova Restaurant Group Holdings, Inc. enters bankruptcy (Image credit: Photo By Mohamed Olwy from Pexels)

Cerca Trova Restaurant Group Holdings, Inc. has filed for Chapter 11 protection alongside four affiliates. The company is an independently owned restaurant operator and Outback Steakhouse franchisee.

Bloomin’ Brands, Inc., the owner of the Outback Steakhouse brand, is the proposed buyer of most of the company’s restaurant assets.

Note: Chapter 11 allows businesses to reorganize their debts while continuing operations under court supervision. A Chapter 11 filing does not necessarily mean that a business is closing. For additional information, readers are encouraged to contact the business directly.

Overview of the Filing

Cerca Trova Restaurant Group Holdings, Inc. submitted its petition on November 2. The proceedings are taking place in the U.S. Bankruptcy Court for the District of Delaware.

PACER records identify attorney Bradford J. Sandler of Pachulski Stang Ziehl & Jones LLP as the company’s counsel.

The records show that the company submitted a list of creditors with the largest unsecured claims. These include Performance Food Group, Budderfly, Inc., Outback Steakhouse of Florida, Schnitzer Properties LLC, Resolution Economics LLC, and others. The unsecured claims were mostly tied to lease obligations and trade debt.

David Goronkin, the company CEO, signed the petition before it was filed with these details.

A summary of the Chapter 11 petition is shared here:

  • Filing Date: November 2, 2026
  • Court and Jurisdiction: U.S. Bankruptcy Court for the District of Delaware
  • Type of Filing: Active, Voluntary Petition
  • Chapter: 11
  • Case Number: 26-11749-CTG
  • Estimated Assets: Between $0 and $50,000
  • Estimated Liabilities: Between $100,000,001 and $500 million
  • Estimated Creditors: 1-49

According to Pacermonitor, four affiliates of the company also made their individual filings in court:

Case Related Details

According to an official announcement, the company operates as Out West Restaurant Group, Inc., running 61 Outback Steakhouse locations across the western United States. These restaurants are part of its franchise business with Bloomin’ Brands.

Bloomin’ Brands has agreed to submit an initial $26.3 million bid for most of Cerca Trova’s restaurant assets through the bankruptcy process. According to the announcement, the proposed deal also includes the assumption of certain obligations, including future lease payments, specified vendor liabilities, and unused gift cards.

The proposed sale depends on approval from the court and a bidding process. Bloomin’ Brands could be as the initial bidder, allowing other interested buyers to present their offers. An auction may take place if qualifying bids are received. The expected closing deadline of the agreement is January 31, 2027.

Bloomin’ Brands has also agreed to provide up to $5.5 million in interest-free financing to support Cerca Trova’s restaurant operations during bankruptcy. The announcement adds that the funding would help cover operating expenses and costs associated with the bankruptcy proceedings.

The company can use the funds when its available cash falls below the required minimum. If the deal fails, the loan would be repaid through another sale or a price adjustment.

Operations to Continue as Normal

The proceedings would not immediately affect customers, employees, or restaurant operations. Cerca Trova plans to keep its Outback Steakhouse locations running during the proceedings, according to Quartz.

FSR Magazine stated that the company also plans to keep paying franchise fees and royalties to Bloomin’ Brands, along with rent on certain leases backed by its parent company. The company has also asked the court for permission to pay certain outstanding amounts owed to employees, suppliers, and vendors.

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Twinkle Jha is a content writer passionate about crafting engaging and informative pieces for diverse audiences. She holds a degree in Journalism & Mass Communication that helps her create news-based articles related to restaurants, retail, and real estate in the US. With five years of writing experience, Twinkle has a strong base for her research, allowing her to create compelling content. Her keen eye for detail and creative approach make her writing stand out. When not working, she loves to watch movies.
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