An Arizona-based concept, Eegee’s, has closed five restaurants and filed for Chapter 11 bankruptcy.
The Tucson, Ariz.-based company has at least 20 other locations in the Tucson and Phoenix, Ariz., areas.
The owner, 39 North Capital, said it needed to close locations to ensure the business would have longevity
According to a lawsuit filed in Maricopa County in October and reported by KOLD 13 News, Eegee’s owed restaurant supplier Sysco more than $1.2 million. Sysco asked for the balance as well as 10% interest, along with attorney fees of $5,500.
According to bankruptcy documents, Eegee’s also owes $725,000 to vendor Merit, $410,000 to Ramp Flex, and $100,000 to Punchh Inc. Eegee’s has $10 million and $50 million in liabilities, and about the same amount in assets.
“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,” Chris Westcott, Eegee’s CEO, said in a statement.
“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,” Wescott said.
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