Tucson’s well-known fast-food chain Eegee’s has a new owner just six months after filing for bankruptcy.
In late April, Eegee Acquisition Corp., a subsidiary of Gladstone Capital based in McLean, Virginia, bought the chain. Eegee’s has 25 restaurants: 20 in Tucson, one in Casa Grande, and four in the Phoenix area. The sale happened after Eegee’s emerged from Chapter 11 bankruptcy.
The previous owner, Eegee’s LLC, part of New York-based 39 North Capital, filed for bankruptcy last December. At that time, the company listed nearly $2.8 million in debts owed to 20 creditors, including Tucson-based Merit Foods.
Gladstone Capital was one of the lenders to 39 North Capital. When 39 North defaulted on its loans, Gladstone took control of Eegee’s. This allowed Gladstone to buy the company during the bankruptcy process, said CEO Chris Westcott. He added, “But for all intents and purposes, the case is on its way to being finalized.”
The bankruptcy filing followed shortly after Eegee’s closed four restaurants in Tucson and one in Phoenix.
Westcott said he does not expect any more closures. “We reviewed all locations and kept the 25 that we believe are stable,” he said.
He emphasized that Eegee’s will remain a part of the Tucson community. “When people hear bankruptcy, they think the company will disappear. But Tucson residents should know Eegee’s is here to stay,” Westcott said. “We will keep doing what we do.”
Westcott was hired to lead the company two weeks before the bankruptcy. He said Eegee’s plans to update its menu, adding hot soups and toasted sandwiches this fall. The company will also improve its kids’ menu, which has been “fairly simple” until now.
Despite being owned by a company based near Washington, D.C., Westcott stressed that Eegee’s remains a local business. “Our offices are on East Broadway Boulevard in Tucson. Our 550 employees live in the communities where they work. Ownership location does not change how we see the company. The brand is local and will stay local.”
Eegee’s began as a small lemonade truck in 1971. Founders Edmund Irving and Bob Greenberg sold frozen lemon drinks near schools, sports events, and concerts before opening their first store in 1972.
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