Subway Rival Files For Bankruptcy And Abruptly Shutters Locations…..


All fast food chains have suffered in the past year as inflation-weary Americans have eaten a lot less.

Burger chains like McDonald’s, Burger King and Wendy’s have all had problems. 

But sandwich chains have been worse hit. For example, Subway has seen sales down 9 per cent – amid complaints of huge price hikes and tired looking shops.

And now one of Subway’s regional rivals – which never recovered after sales dipping during the pandemic – is in trouble.

Arizona’s iconic frozen drink and sub chain Eegee’s has filed for Chapter 11 bankruptcy, making it the latest casualty in a brutal year for fast-food restaurants.

The announcement came with the closure of five locations across Tucson and Phoenix, leaving die-hard fans heartbroken.

The December 6 filing in Phoenix federal court gives the embattled chain – owned by private equity firm 39 North Capital – a chance to reorganize its finances.

Eegee’s joins a grim list of 2024 fast-food bankruptcies, including Red Lobster, BurgerFi, and Buca di Beppa.

Interim CEO Chris Westcott, who only took over two weeks ago, said: ‘The brand has been struggling since the pandemic. We just haven’t bounced back to pre-pandemic levels.’

According to court documents, Eegee’s owes about $2.8 million to suppliers, mostly for food.

Fans of the iconic frozen fruit drinks and sub sandwiches were left reeling as they saw ‘Closed’ signs at locations like West Grant Road and East Speedway.

A note in one drive-thru thanked customers for their support, directing them to nearby locations. Bosses promised customers that no more closures are planned for now.

The company, which began in 1971 as a frozen lemonade truck, has seen rapid changes since being bought in 2018.

An ambitious expansion into Phoenix saw Eegee’s balloon to 35 locations. But a trio of Tucson stores shut down last summer, raising concerns about the chain’s future.

Westcott said the bankruptcy was ‘a step towards stabilizing the brand.’

He promised ‘business as usual’ at remaining locations, with no menu changes or disruptions to loyalty programs.