Sandwich Chain Restaurant Declares Bankruptcy, Abruptly Closes Some Locations

After abruptly closing five restaurants in the Tucson and Phoenix regions, Arizona-based fast-food sandwich and frozen beverage chain Eegee’s filed for bankruptcy last week. Restaurant Business Magazine and several local outlets reported that the Tucson staple declared Chapter 11 bankruptcy on Friday, Dec. 6, after 53 years in business. The filing will allow the company to continue operations as it restructures its debts and finances.

The bankruptcy filing comes amid a difficult time for restaurants, which have been struggling amid a surge of financial obstacles in recent years. Eegee’s has not been immune to the struggles, which have led other restaurants like TGI Fridays, Red Lobster, and Buca di Beppo to file for bankruptcy this year, per Eat This, Not That. According to data from Restaurant Business sister company Technomic, Eegee’s generated $27.9 million in system sales last year, a number that was down 4.8% from the year before.

As a result of these obstacles – and just a day before the Friday bankruptcy filing, in which the company listed both assets and liabilities of between $10 million and $50 million and said it has between 100 and 199 creditors – Eegee’s closed five restaurants. Four Tucson stores were shuttered, as well as one in Phoenix located at 3510 West Peoria Avenue. The company still operates more than 20 other locations in the Tucson and Phoenix areas.

Eegee’s CEO Chris Westcott called the bankruptcy filing and closures “a necessary step” amid an ongoing effort to “preserve the brand’s legacy and protect the future” of the chain.

“While the decision to implement these measures is difficult, it’s a necessary step to preserve the brand’s legacy and protect the future of our dedicated team, loyal customers, and the local neighborhoods we’ve proudly served for over 50 years,” Westcott told KOLD. “As with many in our industry, we’ve encountered unprecedented challenges following the COVID-19 pandemic, as subsequent market conditions have created economic pressure throughout the restaurant industry. This restructuring will provide Eegee’s the opportunity to strengthen its operations while upholding the quality and service our customers know and love.”

Eegee’s first opened in Tucson in 1971 and quickly “revolutionized the food scene in Tucson and Phoenix, capturing the hearts of millions and quenching the thirst of Tucsonans (yeah, it’s a real word), Phoenicians and everyone who visits the Sonoran desert.” The chain now has locations across Southern Arizona and is known and loved for its frozen lemonade.

The company does not anticipate closing anymore stores at this time. Westcott added that employees impacted by the recent closures have been given the option to be transferred to other Eegee’s locations.