Cerca Trova Restaurant Group filed for bankruptcy Monday, saying rising operating costs, including food prices and the impact of California’s minimum wage law, contributed to its financial decline.
The San Diego-based company operates 61 Outback Steakhouse locations, down from a peak of 99 restaurants in 2018, according to court documents filed in the US Bankruptcy Court in Wilmington, Delaware.
Cerca Trova has faced financial challenges since the Covid-19 pandemic. Its debt has grown to approximately $449 million, compared with $269 million in late 2020.
Sources: Bloomberg Markets.