Tucson fast-food chain Eegee’s has new owner after filing for bankruptcy

A Tucson-centered fast-food chain, Eegee’s, has a new owner after filing for bankruptcy protection late last year and emerging recently.

An affiliate of Gladstone Capital Corp. of McLean, Virginia, took over the 25-store chain in late April. Gladstone said a previous stake in Eegee’s was restructured through the bankruptcy process, resulting in a new $20.5 million investment comprised of both stock and debt.

Eegee’s had been owned by a New York company, 39 North Capital, before the December filing in U.S. Bankruptcy Court for the District of Arizona. The court approved the transaction with the Gladstone affiliate, Eegee’s Acquisition Corp.

Eegee’s has four outlets in metro Phoenix — two in Gilbert, one in Mesa and one in north Phoenix — along with a store in Casa Grande. The rest are located in the Tucson area. The company was founded in 1971 by two entrepreneurs selling lemon drinks from a truck near concerts and sporting events, with the first restaurant opening the next year.

The menu includes fruit-flavored ice drinks, sandwiches, fries, pretzels and salads.

The new owner has announced its intention to update locations with new patio seating and décor. Gladstone typically invests in small businesses with revenue below $150 million and positive cash flow, including those with limited technological or market risks.

The Eegee’s chain closed five locations, including one in metro Phoenix, before the bankruptcy filing.

Reach the writer at russ.wiles@arizonarepublic.com.