TUCSON, Ariz. (13 News) – A Tucson staple may be in jeopardy.

On Thursday, Eegee’s closed five restaurants and filed for Ch. 11 bankruptcy the next day. The company has at least 20 other locations in the Tucson and Phoenix areas.

The Tucson stores that closed were those at Grant and Interstate 10, 12th Avenue and Ajo Way, Tanque Verde and Sabino Canyon, and Speedway and Pantano. The Phoenix store was located at 3510 West Peoria Avenue.

The current owner, 39 North Capitalsaid it was necessary to close these locations to ensure a longer lifespan for the company. The company said affected employees will be offered a transfer to other branches in the area.

Eegee’s owes restaurant supplier Sysco more than $1.2 million, according to a lawsuit filed in Maricopa County in October. Sysco is seeking the balance plus 10% interest and $5,500 in attorney fees.

According to bankruptcy documents, Eegee also owes the seller $725,000 Merit$410,000 to Ramp flex and $100,000 Punchh, Inc.

According to the documents, eegee’s has between $10 million and $50 million in liabilities and only that much in assets.

39 North Capital said it does not expect to close any additional branches at this time.

“Although the decision to implement these measures is difficult, it is a necessary step to preserve the brand’s legacy and protect the future of our dedicated team, our loyal customers and the local neighborhoods that we have proudly served for over 50 years serve,” said Chris Westcott , Chief Executive Officer of Eegee’s LLC. “Like many others in our industry, we have faced unprecedented challenges in the wake of the COVID-19 pandemic as subsequent market conditions have created economic pressures across the restaurant industry. This restructuring provides Eegee with the opportunity to strengthen its operations while maintaining the quality and service our customers know and love.”

The restaurant opened in 1971 and quickly gained cult status in southern Arizona.

In 2018 The company was sold to 39 North Capital, a national investment firm.

At the time, 39 North Capital said the company’s fan base was an important factor in the decision.

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