Eegee’s, Tucson’s iconic sandwich chain known for its namesake frozen fruit drink, filed for Chapter 11 bankruptcy on Friday.

The filing in U.S. Bankruptcy Court in Phoenix came a day after Eegee’s LLC, owned by 39 North Capital, closed four locations in Tucson and one in Phoenix, bringing the total number of restaurants in Arizona to 25 – 21 in Tucson and four in the Phoenix area.

The Chapter 11 filing will give the company breathing room to reorganize and stabilize, said Chris Westcott, interim CEO of Eegee.

“We didn’t make this decision lightly, but we felt it was in the best interest to file Chapter 11,” said Westcott, who joined the company two weeks ago. “The brand has been struggling since the pandemic … and we just haven’t gotten back to pre-pandemic levels.”

According to bankruptcy filings, Eegee has about $2.8 million in outstanding debts to its 20 largest creditors, including Arizona-based Sysco Food Services (just over $1 million), Tucson-based Merit Foods ($725,972 ) and Ramp Flex ($410,618).

It could take three to six months for the bankruptcy to be resolved before the company considers next steps, Westcott said.

“We’re very bullish on the brand,” said Westcott, whose decades-long restaurant career has spanned fine dining establishments in Pennsylvania and Oregon. “We believe this will be a step towards stabilizing the brand and returning to growth mode.”

Eegee’s, which started as a frozen lemonade truck in Tucson in 1971, had 24 locations when 39 North Capital purchased the company in 2018. Months later, the company announced plans to expand into the Phoenix area.

Within a year between 2021 and 2022, Eegee’s opened five locations in Phoenix, bringing the company’s total to 35.

However, the expansion was accompanied by some decline in the summer of 2023. Eegee’s closed three Tucson locations within four to five weeks as part of a strategic plan aimed at capitalizing on the city’s changing demographics, officials said at the time.

On Thursday, the company closed restaurants at 1530 W. Grant Road; 502 W. Ajo Way; 6810 E. Tanque Verde Road and 7760 E. Speedway. Officials said no further closures are planned.

“Our goal is to figure out what works and what we need to work on to move in a positive direction,” Westcott said.

Some long-time Eegee customers might consider the company’s recent announcement of switching bread suppliers as a starting point.

Eegee’s switched bread suppliers for the first time in years in October 2022, causing a quick backlash from customers. Last May, the company announced on Facebook that it was testing a new provider, longtime Arizona bakery Capistrano’s.

In August, the company made the switch after testing Capistrano’s bread at several locations where customers had ordered it “thousands of times.”

Westcott said the remaining restaurants will operate “business as usual” with no changes planned to the menu or the company’s customer loyalty and gift card programs.