This Iconic Sandwich Chain Just Filed for Bankruptcy—Here's What's Happening

Restaurant bankruptcies have been quite the trend in recent months. A number of major establishments have filed this year to the dismay of their patrons, with TGI Fridays and Red Lobster among the most recent. While establishments who find themselves in a similar financial boat are working hard to update their systems to keep the ship afloat, yet another iconic chain has fallen victim to a set of financial woes.

Tucson, Arizona-based sandwich chain Eegee's capped off a 53-year run last Friday with a Chapter 11 bankruptcy filing and the closure of a handful of stores in the region. The popular quick-service sandwich shop reported both assets and liabilities totaling between $10 million and $50 million and claims to have somewhere between 100 and 199 creditors.

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While the company generated nearly $28 million in system sales last year, according to Restaurant Business sister company Technomic, those numbers are down 4.8-percent from the year prior. Local news sources in the area reported that the company officially closed five locations this past week, bringing the brand's number down to 25 restaurants in total.

What Eegee's is experiencing is something that is being felt by the restaurant industry as a whole. Over 30 chains and large franchisees have explored bankruptcy protection this year alone. High costs of goods and a slowdown in sales have plagued the brands as consumers ultimately dine out less. And despite Eegee's being a fan-favorite institution in the Tucson area with a menu that boasts sandwiches, salads, fries and fruity frozen drinks, the company is not immune to current dining trends and the rising cost of goods.

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Since 2018, Eegee's has gone through a number of regime changes. The company was sold to private-equity firm 39 Point Capital and restaurant investor Kitchen Fund in 2018 and four years later, the company elected Jason Vaughn, former executive with Yum Brands, Wendy's and Frisch's (among other brands) as CEO. The brand is now under new management, electing Chris Westcott as CEO most recently.

Despite reporting "record summer sales," Eegee's has reportedly been seeking necessary changes through restaurant closures since September 2023. Back then, the brand suggested that the closures were due to "their proximity to other locations," in a social media post shared to X. "While it's never easy saying goodbye to a neighborhood," the post reads, "the closures will allow us to invest more in our nearby stores and strengthen our ability to bring Eegee's to more communities."

Only time will tell what is in store for Eegee's and other establishments in a similar situation. Cost of goods and changing consumer dining habits aside, though, any restaurant looking to experience a long and fruitful existence should make the changes necessary to make that dream a reality. Otherwise, our favorite establishments will continue to close, leaving room for new contenders to fill the space. 

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