Eegee's Files for Chapter 11 Bankruptcy

Eegee's, a well-known Arizona fast-food chain famous for its frozen drinks and sandwiches, has filed for Chapter 11 bankruptcy following a significant decline in sales and the closure of five locations in Tucson and Phoenix. The chain's sales dropped 4.8% in 2023, contributing to its financial struggles amid a broader downturn affecting many restaurant chains. Eegee's, which has been in business for 53 years, is owned by private equity firm 39 North Capital and reported liabilities between $10 million and $50 million. Interim CEO Chris Westcott emphasized that the closures were necessary for the brand's survival, assuring customers that operations will continue at the remaining 25 locations without menu changes. The bankruptcy filing allows Eegee's to reorganize its finances while aiming to preserve its legacy and support local communities. Despite the challenges, the company does not anticipate further closures at this time.