New York City Mrs. Fields Famous Brands LLC said 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.
Under a prepackaged plan, creditors vote on certain aspects of the plan prior to the bankruptcy filing in court.
More than two-thirds of its bondholders have agreed to vote in favor of the prepackaged plan, though their support is contingent upon the company submitting its bankruptcy filing to the court by Aug. 25, according to the regulatory filing.
The company plans to continue doing business and has also hired Blackstone Advisory Services to explore a possible sale of TCBY, according to the filing.