PHOENIX — A beloved sandwich shop based in Utah has filed for bankruptcy.
Salt Lake City-based Even Stevens Sandwiches filed Chapter 11 bankruptcy protections on Thursday in the U.S. Bankruptcy Court for the District of Arizona in Phoenix, according to court filings.
The news comes after the sandwich shop announced it would be restructuring the company, which included suspending the company’s policy of donating sandwiches for every sandwich sold in their stores.
The company said in a press release that they will be closing their Provo location, and they have already closed stores in Arizona, Texas and Colorado.
Chief restructuring officer Brooks Pickering said in the release that the company “expanded too quickly, saddling the company with significant financial and operational challenges.”
In court filings, Even Stevens is said to have assets totaling between $1 million and $10 million.
The company’s founder, self-described “cause capitalist” Steven Down, has faced legal issues and other bankruptcy proceedings in recent months.
In a complaint filed last May by the Securities and Exchange Commission, Down was accused of misleading and defrauding those who invested in The Falls Event Center LLC, a company owned and operated by Down. The complaint said that Down told investors that the company was profitable, when company finances clearly indicated it was not. Down reportedly obtained over $120 million from more than 300 investors.
Down resolved the SEC complaint without admitting or denying fault, and paid a fine of $150,000 to the federal government.
The Falls Event Center LLC, formed in 2011, filed in July for bankruptcy protections in the U.S. Bankruptcy Court for the District of Utah.
Even Stevens has several stores throughout Utah. Stores in Cottonwood Heights, downtown Salt Lake City, Draper, Logan, St. George, Sugarhouse and Ogden will remain open through the restructuring process, according to the release.