NEW YORK (Reuters) - 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.
Restaurant and food companies have struggled this year as higher gasoline prices and rising ingredient costs have eroded sales and profits. S&A Restaurant Corp, owner of the Bennigan's and Steak & Ale chains, filed for Chapter 7 liquidation in July, while Buffets Holdings Inc, the operator of Old Country Buffet and Ryan's steakhouses, filed for Chapter 11 bankruptcy protection in January, saying customers had cut back on discretionary spending
The company has struggled with declining sales throughout the past year. In two separate transactions since 2007, the company sold its Pretzel Time, Pretzelmaker and Great American Cookies brands to NexCen Brands Inc (NEXC.O) for more than $100 million in cash and stock.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment