The Arizona-based fast-food sandwich chain Eegee’s has filed for Chapter 11 bankruptcy and closed five of its eateries.
According to combined media reports, the 53-year-old chain listed both assets and liabilities of between $10 million and $50 million and said it has between 100 and 199 creditors. The company, which was acquired in 2018 by the private equity firm 39 Point, reported $27.9 million in system sales last year, a 4.8% year-over-year decline.
The company has been experiencing financial problems since the pandemic. In 2021, it entered into a $17 million credit agreement with Gladstone Capital Corporation that was amended four times in the following years. But as Eegee’s debt swelled to $24 million and the company defaulted on its loan obligations, Gladstone replaced the company’s leadership and appointed a sole independent director to coordinate its restructuring. Earlier this year, Eegee’s contracted the investment banking firm Mastadon to explore the sale of its assets, but no entity expressed interest in an acquisition.
Four of the closed eateries are in the Tuscon market and one is in Phoenix. Eegee’s will retain about 20 locations across Arizona.
“While it’s never easy saying goodbye to a neighborhood, we identified these restaurants because of their proximity to other locations,” said the company on its X page. “The closures will allow us to invest more in our nearby stores and strengthens our ability to bring Eegee’s to more communities.”
