The sandwich chain Eegee’s is emerging from bankruptcy after a sale to its lender.
The Tucson, Arizona-based chain was owned by New York-based 39 North Capital when it filed for bankruptcy in December, after spending years struggling to recover from the pandemic. At the time, the chain had $24 million in secured debt with Gladstone Capital. Eegee’s had fallen into default and the company had closed five of its 30 restaurants before the filing.
In April, an auction was held, but there were no outside bidders, according to court documents. Gladstone acquired all the assets and the remaining 25 leases in a $20.5 million credit bid.
McLean, Virginia-based Gladstone’s portfolio includes several other restaurant brands, including Utah-based Café Zupas and Texas-based Wings ‘N More.
Eegee’s CEO Chris Westcott told The Arizona Daily Star there are no plans for more closures. Some menu innovations are planned, but the company will move forward with the 25 units now open, which he described as “stable.”
The chain was founded in Tucson in 1972 by Edmund Irving and Bob Greenberg, who first started selling frozen drinks from a lemonade truck, and then moved into a brick-and-mortar.
Eegee’s was one of a number of smaller chains that sought Chapter 11 last year and ended up being acquired by lenders after failing to find buyers, including Rubio’s, sister brands Tender Greens and Tocaya, and Buca di Beppo.
Sister brands Burger Fi and Anthony’s were also acquired out of bankruptcy by lender TREW Capital last year, but then BurgerFi was acquired in December by the co-founder of Savvy Sliders, and Anthony’s was sold to Florida Burger Inc.
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