August 18, 2008
Mrs. Fields Famous Brands LLC, famous for its cookies, says it must reorganize under Chapter 11 bankruptcy, and has asked its creditors for input on a bankruptcy plan.
The information was relayed to investors at the end of last week in the form of a document filed with the U.S. Securities and Exchange Commission (SEC).
Despite the financial troubles, Mrs. Fields doesn't plan to stop baking cookies. It said it would continue its operations while spinning off parts of the company, including its TCBY frozen yogurt business.
Mrs. Fields is among the food companies that have struggled under the double whammy of rising fuel and food commodity prices. While transportation costs have mushroomed, so have the costs of ingredients that go into the products.
In the filing, the company said that it was forced to declare bankruptcy because it would be unable to make an interest payment next month.
The company was founded in 1977 by Debbi Fields, who began making homemade cookies in her the kitchen of her California home and selling them.
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