Mrs. Fields Famous Brands LLC warns that it will file Chapter 11 within the next two months if it cannot persuade its note holders to cut $145 million in debt by the end of June.
The Salt Lake City-based franchisor of both Mrs. Fields cookies and frozen yogurt retailer, TCBY, has a high interest debt-load of over $200 million.
The firm has struggled for years to pay just the interest expense, never mind the principal of their outstanding debts. Despite selling its most profitable brands Pretzel Maker and Pretzel Time last year and The Great American Cookie to NexCen Brands earlier this year in order to receive much needed cash, the company still finds itself not able to pay $10.25 million in interest that comes due in September.
SchoolOfMusic.com recruits music teachers and then provides music lessons in students’ homes, teachers’ home studios, and after school programs. Their bizop is a must see!
Mrs. Fields Warns Of Bankruptcy, Halts New Franchise Sales
June 16, 2008 by Cris | 1 Comment
In Franchising in China, News, Startup
Ron Towns on June 16th, 2008 at 1:27 pm
Mrs. Fields in bankruptcy? NOOOO. Who runs the company? Did they over-expand their franchises too quickly? Are people buying less cookies? How are the other cookie companies doing? There’s probably a couple crucial things they could do to revamp their marketing efforts, which would lead to higher sales. They need to probably focus on the critical few vs. the trivial many.. http://www.readtheanswer.com/index.php?rta=blog