Bloomin' Brands up; proposes to bid for bankrupt franchisee operator's assets
BLMN•Bloomin' Brands shares rose about 6% to $11.20 in morning trading after it agreed to be the lead bidder for substantially all of Out West Restaurant Group's assets for $26.3 million. It also agreed to provide up to $5.5 million in bankruptcy financing.
1. Proposed asset bid
Bloomin' Brands agreed to act as the “stalking horse,” or lead bidder, in a sale of substantially all of Out West Restaurant Group's assets for $26.3 million. It also agreed to provide up to $5.5 million in debtor-in-possession financing during the bankruptcy proceedings.
2. Restaurants remain open
Out West, an independently owned operator of 61 Outback Steakhouse restaurants, filed for Chapter 11 bankruptcy. The restaurants will continue operating, and Out West expects to continue paying franchise fees and royalties during the bankruptcy process.
