Mrs. Fields: After the Cookie Crumbled

Posted by: Stacy Perman on October 7, 2008

fields3.jpg In August, we reported on this blog that cookie and frozen yogurt franchisor Mrs. Fields planned to file for bankruptcy protection in order to help restructure its business. According to thedeal.com, last week, the Salt Lake City-based company won confirmation on its prepackaged reorganization from the US Bankruptcy Court for the District of Delaware. However apparently, the confirmation did not come without some resistance. According to the WSJ, a number of Mrs. Fields frozen yogurt franchises as well as the Internal Revenue Service objected to the plan and urged the court to include additional protections. The company’s plan would slice $145.7 million in note debt while giving noteholders the majority of the company’s equity. As proposed, noteholders would swap their securities for $195.7 million in notes for $90 million in cash, $50 million in new senior secured notes and 87.5% of the company’s new common stock.

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What's it like to run your own company today? Entrepreneurs face multiple hurdles new and old, from raising capital and managing employees to keeping up with technology and competing in a global marketplace. In this blog, the Small Business channel's John Tozzi and Nick Leiber discuss the news, trends, and ideas that matter to small business owners. Follow them on Twitter @newentrepreneur.

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