Mrs. Fields Crumbles, Seeks Bankruptcy Protection

SALT LAKE CITY, Utah (Blue MauMau) - Mrs. Fields Famous Brands LLC, announced Friday that it is seeking Chapter 11 bankruptcy protection. The franchisor to some 470 locations around the world and to hundreds of TCBY frozen yogurt shops has been unprofitable and struggled with paying an increasing amount of high-interest debt.

In the beginning of July, Mrs. Fields warned that it would miss its payment of debt and of pending bankruptcy. A few months earlier the franchisor had halted the selling of new franchises. The chain has been on Blue MauMau's watch-list of distressed franchisors.

According to Friday's SEC filing, Chief Legal Officer Michael Ward has stepped in as "Co-Interim Chief Executive Officer" [sic]. The filed document indicates that the restructuring has already been discussed with loan holders and will be implemented through a pre-packaged plan. The same document also stated that Don Rice has assumed the role of the chairman of Mrs. Field's board of directors. Mr. Rice last year joined troubled Westaff as a member of its board.

Mrs. Fields plan calls for holders of some $195.7 million in old outstanding notes to settle instead for $90 million in cash and new notes and stock to be issued.