Posted by: Stacy Perman on August 18, 2008
Reuters reports that Mrs. Fields, the ubiquitous mall friendly cookie franchiser launched by a Utah housewife, Debbi Fields in 1977, planned to file for Chapter 11 bankruptcy protection in order to help restructure its business. The company, with 1,200 licensed and franchised Mrs. Fields Cookies and TCBY frozen yogurt locations around the world, had about $196 million in publicly traded debt. According to a regulatory filing the company said it would not have been able to make an interest payment due in September and by last Wednesday it had brokered a deal with Capricorn Investors III LP concerning a number of financial terms and timelines under its investment agreement.
According to the Reuters report, Mrs. Fields, has suffered from high gas prices like many but had been struggling for the past year having already sold its Pretzel Time, Pretzelmaker, and Great American Cookie brands to NexCen Brands Inc. in a deal worth more than $100 million in cash and stock.