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Friday, August 15, 2008

Cookie Maker Mrs. Fields Files for Chapter 11

FOXBusiness

The struggling privately owned Mrs. Fields Famous Brands, owner of the famous mall-based cookie stands and TCBY yogurt stores, said Friday it plans to file for Chapter 11 bankruptcy reorganization, according to a filing with the Securities & Exchange Commission.

Mrs. Fields is plagued with $200 million in debt, a slowing economy where consumers have cut back on discretionary purchases and record-high dairy and ingredient prices. The company also saw the resignation of its Chief Executive Officer Stephen Russo late last month.

The company, in their most recent SEC earnings filing, reported a net loss of $10.7 million last quarter, compared with a loss of $1.4 million in the same period last year. Because the company is privately held, it doesn’t report a profit or loss on a per-share basis.

Mrs. Fields was founded in the late 1970s and has around 1,200 franchisees of its famous cookie stands in malls across America. The company purchased the yogurt brand TCBY in 2000 as well.

Chapter 11 bankruptcy is the legal reorganization of a company and does not necessarily mean a company is going out of business.

Michael Ward, Mrs. Fields' executive vice president, was not immediately available for comment.