Mrs. Fields Goes Bankrupt

[Snoopy]

The recession diet claimed another victim today. That's when the Wall Street Journal reports Mrs. Fields Famous Brands LLC -- which sells those formerly wonderful chocolate chip cookies and TCBY yogurt from 1,200 U.S. franchises -- bit the dust.

Mrs. Fields is cooking up a messy financial stew. Its pre-packaged bankruptcy will give bondholders the majority of its new common stock. In particular, the Journal reports that deal lets "note holders exchange their $195.7 million in notes for $90 million in cash, $50 million in new senior secured notes and 87.5% of the company's new common stock. The note holders are expected to recover 86.5% on their claims."

Mrs. Fields has been losing money and it posted a $10.7 million loss in the quarter ending June 2008-- almost eight times more than the $1.4 million it lost in the same quarter of 2007. When you're trying to pay for gasoline and keep your family fed, chocolate chip cookies and frozen yogurt are luxuries that many people can do without. The recent credit problems of Pizzeria Uno and the bankruptcy of Bennigan's and Steak & Ale suggest that many more retailers will bite the dust before this economic crunch is out.

That's the way the cookie crumbles.

http://www.bloggingstocks.com/2008/0...in-bankruptcy/

[KNRG]

This really doesn't bother or concern me. Rather, I see it as a chance for new options to rise. Mrs. Fields product had become overly simplistic and at best mediocre in offerings. Similarly, Bennigans had nothin you couldn't get from Applebees, TGI Fridays, Ruby Tuesdays, and dozens of other restuarants in the same vein. They all became too alike and one had to fail if sales dropped.

I'm more then happy one failed, because just like Fields, the product had become mediocre and homogenized.

[SNJ]

I'm tired of her cookies.....

[Bob38dizfan]

Its a sad situation, but I'm not going to miss them at all, as KRNG said, something new needs to come forward.

[PirateGuy 815]

I'm upset. Better go to the store and by the rest of her cookies.

[Scott in LA]

Is there a closeout sale? All cookies for 50 cents each?

[Mortimer]

Sounds like they bit off a little more than they could chew.

[KNRG]

Is there a closeout sale? All cookies for 50 cents each?

I think i'd die!

*checks the website*

Edit: They're not even having a sale on the website! Screw them.

[figment1986]

This really doesn't bother or concern me. Rather, I see it as a chance for new options to rise. Mrs. Fields product had become overly simplistic and at best mediocre in offerings. Similarly, Bennigans had nothin you couldn't get from Applebees, TGI Fridays, Ruby Tuesdays, and dozens of other restuarants in the same vein. They all became too alike and one had to fail if sales dropped.

I'm more then happy one failed, because just like Fields, the product had become mediocre and homogenized.

if you have another location for Monte cristo in florida... then spill!

[Scott in LA]

Unfortunately, it doesn't say anything on the website. I did find this, though:

http://www.mrsfields.com/gifts/Heart...Special+Offers

which none of you bought me when I bought a new house earlier this year. Feel free to correct that oversight at any time.