Eegee’s restaurant closes Arizona locations as it becomes the latest 2024 fast food bankruptcy

The popular Arizona sub sandwich chain Eegee’s has announced it is filing for Chapter 11 bankruptcy protection and will close several stores. Its bankruptcy filing in the final weeks of 2024 is just the latest in a string of bankruptcies that have afflicted chain restaurants this year. Here’s what you need to know about Eegee’s bankruptcy and what it means for the beloved Arizona sub staple. What is Eegee’s? Eegee’s is a chain of sub sandwich shops that operate in Arizona. The company is known for its “grinder” sandwiches and also serves traditional subs as well as chicken, fries, and pretzels. Eegee’s was founded in Tuerscan, Arizona, in 1971. In 2018, the chain was sold to the private equity firm 39 North Capital. At the time of the sale, Eegee’s CEO C. Ron Petty, said, “ “39 North’s investment will enable us to supercharge our growth, expand our footprint, remodel the restaurant exteriors and invest in new technology. Just as important, 39 North will continue the family-owned-and-operated tradition on which eegee’s was founded.” Why is Eegee’s filing for bankruptcy? The company is facing financial struggles due to lower foot traffic, according to documents filed on December 6 with the United States Bankruptcy Court for the District of Arizona. In those court documents, Eegee’s legal team partially blames Covid-19 for the company’s financial woes. Eegee’s “suffered significantly from loss of foot traffic, resulting in declining revenue without proportionate decreases in rental obligations, debt service, and other liabilities,” the court filing states. “External pressures resulting from the pandemic, including recent increases in wages and the cost of labor, shipping and food inflation, decreased availability of labor, and inflation generally have driven the Debtor’s cash flow issues.” Is Eegee’s going out of business? No. The reason the company is filing for bankruptcy is to help it get its finances under control so it can regain a firm financial footing and continue operating in the years ahead. Is Eegee’s closing any locations? Unfortunately, yes. In the court filing, Eegee’s announced it will close five locations. The document says the following five stores will be closed immediately: 6810 East Tanque Verde, Tucson, AZ 85715 502 West Ajo Way, Tucson, AZ 85713 7760 East Speedway Blvd., Tucson, AZ 85711 1530 West Grant, Tucson, AZ 85745 3514 West Peoria Avenue, Phoenix, AZ 85029 In addition, Eegee’s is closing a commissary that it operates at 3360 East Ajo Way in Tucson. This commissary serviced Eegee’s restaurants. Finally, Eeggee’s says it has previously closed three other restaurants located at: 7102 East Broadway, Tucson, AZ 85710 1758 East Irvington Road, Tucson, AZ 85711 1991 East Ajo Way, Tucson, AZ 85713 After the closures were announced, Eeggee’s online store locator tool shows that the company has 25 locations in Arizona. Restaurant bankruptcies pile up in 2024 Eegee’s is far from the only food chain to file for bankruptcy in 2024. That list includes Red Lobster, Tijuana Flats, BurgerFi, Buca di Beppo, and others.  Often cited reasons for the filings include foot traffic that never rebounded after the pandemic, inflationary pressures, and a reluctance of cost-conscious consumers to spend their discretionary dollars eating out.