Cookie retailer Mrs. Fields Famous Brands LLC said on Friday it plans to file for Chapter 11 bankruptcy protection to help restructure its business, according to a U.S. Securities and Exchange Commission filing.
The company, which licenses and franchises about 1,200 Mrs. Fields Cookies and TCBY frozen yogurt locations worldwide, has begun soliciting votes from creditors for a "prepackaged" bankruptcy reorganization plan.
Under a prepackaged plan, creditors vote on certain aspects of the plan prior to the bankruptcy filing in court.
Michael Ward, interim co-chief executive officer of Mrs. Fields Famous Brands, was not available to comment.
Mrs. Fields said in the regulatory filing that it would have been unable to make an interest payment on its debt in September. It said it plans to continue doing business.
More than two-thirds of its bondholders have agreed to vote in favor of the prepackaged bankruptcy plan, the company said in the filing. Support for the plan is contingent upon the company submitting its bankruptcy filing to the court by August 25, according to the regulatory filing.
Mrs. Fields, which has about $196 million in publicly-traded debt, said it reached an agreement on Wednesday with its equity sponsor Capricorn Investors III LP to modify certain financial terms and revise timelines under the terms of their investment agreement.