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Mrs. Fields Cookie Goodness Filed for Bankruptcy Protection
17-Aug-2008
Written by: Sari N. Kent
Mrs. Fields and TCBY lovers will be sad to hear that they are filing for bankruptcy.
Much beloved Mrs. Fields cookies, with more than 1,000 franchises, including TCBY frozen yogurt, is filing for Chapter 11 Bankruptcy Protection. Reuters delves into how Mrs. Fields cookies started out, “Mrs. Fields, based in Salt Lake City, Utah, was started in 1977 by Debbi Fields, a young mother who made cookies from scratch at her first location in Palo Alto, Calif. The company began franchising stores in 1990 and in 2000 it gained control of TCBY, which stands for ‘The Country's Best Yogurt,’ through a $140 million cash buyout.”
Yet, stores and franchises all over the U.S. continue bringing their chewy treats as well as their cold slide down taste to the globe.
It seems the problem ended up being sagging sales along with the rising of gas prices and the ingredients needed. Mrs. Fields Famous Brands LLC, the cookie-chain based in Utah, has unveiled a prepackaged Chapter 11 bankruptcy plan. The details were released in a filing with the U.S. Securities and Exchange Commission on Friday, Bloomberg reported. The plan offers creditors full recovery, with no crumbs left over for the equity holders.
The Calgary Herald digs a little deeper, “More than two-thirds of its bondholders have agreed to vote in favor of the plan, though their support is contingent upon the company submitting its bankruptcy filing to the court by Aug. 25, according to the filing.”
It seems that Mrs. Fields and TCBY are doing their best to continue spreading joy and bliss for people all over the globe, despite the shaky times.
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