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A New Chapter For Mrs. Fields
The filing said that more than two-thirds of the company’s bondholders have agreed to a prepackaged reorganization plan.
August 15, 2008
Higher costs and a struggling economy have made their impact felt on another well-known retailer, this time in the food industry.
Mrs. Fields Famous Brands, a purveyor of cookies and the owner of TCBY yogurts, said in a filing with the Securities and Exchange Commission last week that it will file for Chapter 11 bankruptcy protection.
The filing said that more than two-thirds of the company’s bondholders have agreed to a prepackaged reorganization plan, and the company’s operations will continue. The company has an interest payment due in September that it would not have been able to make.
"There are several food retailers right now that are mall-based that are under pressure," Marti Kopacz, managing partner of the restructuring group at accounting firm Grant Thornton, told Reuters. "Food that is out of the home and food that is arguably discretionary is going to come under pressure when people don't feel that they've got that discretionary income in their wallets."
To read the full story from Reuters, click here.
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