Friday, August 15, 2008

Death of Chocolate

by PJ on 8/15/2008 07:00:00 PM

As opposed to death by. Bad joke, I know. But Friday marked the latest in a growing list of retail casualties, and one I relied on for my chocolate fix at the mall, too:

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.

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 August 25, according to the regulatory filing.

It's Friday, and the FDIC is quiet .... (and hat tip for the story to just about everyone in the comments!)