Tuesday, September 02, 2008
Mrs. Field's may be filing for bankruptcy
It appears that right now is not a good time to be in the food business. First Bennigan's closed the majority of their stores and now Mrs. Field's Famous Brand is planning on filing for Chapter 11 bankruptcy protection.
According to Forbes, the cookie maker won't be able to make a scheduled debt payment in September. The company is currently "soliciting votes from creditors for a 'prepackaged' bankruptcy reorganization plan." That means that the people in charge at Mrs. Field's are talking to creditors to see if they'll agree to the company's reorganization plans. So far about two thirds of the creditors have agreed to the prepackaged bankruptcy deal.
For the plan to go through, Mrs. Field's has to file by August 25. It's been forever since I had a Mrs. Field's cookie, and if lots of other consumers are like me, that's probably part of the reason they're heading into bankruptcy. Are Mrs. Field's products good enough to save, or should the company just give it up?