Eegee's plans to relocate several Tucson restaurants

Tucson customers may see several familiar eegee’s restaurants temporarily close as their leases expire, but the company says the changes are part of a relocation strategy rather than a retreat from Southern Arizona. The first confirmed move involves the restaurant at Speedway Boulevard and Tucson Boulevard, which is expected to shift a few blocks east on Speedway into the building currently occupied by Blake’s Lotaburger. Eegee’s representatives say they are searching for replacement sites in other affected areas and intend to reopen restaurants there.

The announcement comes as the Tucson-founded chain emerges from Chapter 11 bankruptcy under new ownership. An affiliate of Gladstone Capital, eegee’s Acquisition Corp., acquired the company’s 25 remaining restaurants in Tucson and Phoenix after the sale was approved by the United States Bankruptcy Court for the District of Arizona. The transaction gives the chain new financial backing while preserving the locations that remained open after five restaurants were closed during the bankruptcy process.

For Tucson residents, the immediate message from the company is that eegee’s is continuing to operate across the area. Its location directory remains available, and customers can still visit other restaurants in Tucson and elsewhere in Arizona. The company has not described the lease related closures as permanent shutdowns. Instead, it says it is evaluating new sites that may work better for customers and for the business, with plans to reopen in neighborhoods where restaurants leave their current locations.

The Speedway and Tucson Boulevard restaurant is the clearest example of that approach. Rather than abandon the area, eegee’s plans to move into the former Blake’s Lotaburger space farther east along Speedway Boulevard. Company representatives have not provided a timetable for the move in the announcement, and they have not identified replacement addresses for the other properties affected by expiring leases. The planned transition could mean a temporary gap for some customers, but the company says its broader Tucson presence will continue.

The relocation news follows a difficult period for the brand. In December 2024, eegee’s then owner, 39 North Capital, announced five restaurant closures and filed for Chapter 11 bankruptcy protection. The Tucson restaurants that closed were at Grant Road and Interstate 10, 12th Avenue and Ajo Way, Tanque Verde Road and Sabino Canyon Road, and Speedway Boulevard and Pantano Road. A Phoenix location at 3510 West Peoria Avenue also shut down. Before the bankruptcy filing, the chain had 30 restaurants, meaning the 25 remaining locations became the central focus of the restructuring.

Court filings and related legal claims showed the financial pressure behind the bankruptcy. Eegee’s had approximately $24 million in secured debt to Gladstone Capital and had fallen into default, according to the bankruptcy reporting. A lawsuit filed in Maricopa County by restaurant supplier Sysco alleged that eegee’s owed more than $1.2 million, plus 10% interest and $5,500 in attorney fees. Bankruptcy documents also listed debts of $725,000 to vendor Merit, $410,000 to Ramp Flex and $100,000 to Punchh. The filings placed the company’s assets and liabilities in the range of $10 million to $50 million.

A court supervised auction held in April drew no outside bidders, according to court documents. Gladstone ultimately obtained the company’s assets and the leases for the remaining 25 restaurants through a $20.5 million credit bid. Gladstone’s broader portfolio includes restaurant companies such as Utah based Café Zupas and Texas based Wings ‘N More. The lender’s acquisition places eegee’s among several restaurant chains that have been bought by creditors after entering bankruptcy and failing to attract another purchaser.

The new ownership has presented the deal as a chance to stabilize and rebuild an Arizona institution. Chris Westcott, CEO of eegee’s Acquisition Corp., said all 25 remaining restaurants would stay open and that some would receive renovations. He also told the Arizona Daily Star that the company does not currently plan additional closures. The company expects to move forward with the existing restaurants, which Westcott described as stable, while also considering menu changes and other improvements.

Eegee’s history is central to the company’s effort to reassure longtime customers. The business began in Tucson more than 50 years ago, when Edmund Irving and Bob Greenberg started selling frozen drinks from a lemonade truck before opening a brick and mortar restaurant. The chain developed a devoted following in Southern Arizona, and that customer base was cited when 39 North Capital bought the company in 2018. The brand’s current leadership says that history will remain part of its future. CEO Ken Kenwood said the expiring leases create an opportunity to find locations that better serve guests and the business, and emphasized that eegee’s is not leaving Tucson.