News Summary
Eegee Acquisition Corp., affiliated with Gladstone Capital Corporation, has successfully acquired the Eegee’s chain, which operates 25 quick-service restaurants in Tucson and Phoenix. Approved by the U.S. Bankruptcy Court, the acquisition will allow Eegee’s to sustain its popular offerings, including frozen fruit drinks and sub sandwiches. CEO Chris Westcott has plans to revitalize the brand by enhancing community engagement and introducing new menu items. The acquisition follows a Chapter 11 bankruptcy filing and aims to restore profitability while deepening roots within the community.
Tucson, Arizona —
Eegee Acquisition Corp., an affiliate of Gladstone Capital Corporation, has successfully acquired the Eegee’s chain, which operates 25 quick-service restaurants in Tucson and Phoenix. The acquisition was approved by the United States Bankruptcy Court for the District of Arizona following a Chapter 11 bankruptcy sale process, allowing Eegee’s to retain all its locations and continue serving its popular frozen fruit drinks and menu items.
CEO Chris Westcott has expressed enthusiasm about the future of the Eegee’s brand, highlighting a commitment to maintaining its presence in Tucson, where the original location opened in 1971. Currently, the chain includes 20 locations in Tucson, with additional stores in Casa Grande and Phoenix.
The Eegee’s brand is widely recognized for its signature “eegee,” a refreshing frozen drink available in a variety of fruity flavors, such as lemon, strawberry, piña colada, and mango. Along with these popular drinks, the menu also features toasted and cold sub sandwiches, chicken tenders, salads, and loaded French fries.
Plans for Future Growth
Westcott has outlined several initiatives aimed at revitalizing Eegee’s operations, including investments in community-focused projects, refreshing the store environments, and reinstating a previously popular coupon card program. The new management is keen on developing partnerships with local non-profits, enhancing community engagement, and introducing new menu items like hot soups, alongside innovations for the kids’ menu.
Furthermore, updates to the locations will include adding outdoor patio seating and enhancing the décor at select stores. The iconic “Sweet Ride” vanette, a well-known symbol of the brand, is set to be revamped for appearances at local events in the upcoming fall season.
Background on the Acquisition
The acquisition comes after Eegee’s LLC, the chain’s former owner, filed for bankruptcy in December 2024, citing nearly $2.8 million in debts owed to 20 creditors. Gladstone Capital, which previously held a stake in Eegee’s, stepped in to acquire the chain following this default. While the bankruptcy filing resulted in the closure of five locations—four in Tucson and one in Phoenix—no additional closures are anticipated under the new management.
Gladstone Capital typically invests in smaller businesses that have revenues below $150 million and exhibit positive cash flow. The company is currently working to finalize settlements with creditors, a process expected to take between 90 to 120 days. This strategic acquisition aims not only to restore Eegee’s profitability but also to deepen its roots within the community it has served for over 50 years.
Originally starting with frozen lemon drinks sold from a truck, Eegee’s has become a beloved part of Tucson’s culinary landscape. The brand’s dedication to quality offerings has helped it maintain a loyal customer base, and under new ownership, there is optimism about its continued success and evolution in the fast-casual dining market.
Deeper Dive: News & Info About This Topic
- KVOA: Eegee’s Tucson Restaurants Acquired
- Wikipedia: Eegee’s
- AZ Central: Eegee’s Fast Food Has New Owner
- Google Search: Eegee’s chain
- KGUN9: Eegee’s Chain Acquired After Bankruptcy
- Encyclopedia Britannica: Fast Food
Author: STAFF HERE PHOENIX WRITER
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