Mrs. Fields Famous Brands LLC, the cookie maker based in Salt Lake City, said it plans to file for bankruptcy and began seeking support from creditors for a so- called "prepackaged" Chapter 11 plan.
The company filed the turnaround plan today with the U.S. Securities and Exchange Commission. Unsecured creditors would be paid in full under the proposed plan, while equity holders wouldn't receive any recovery.
In a prepackaged bankruptcy, creditors vote on terms of the reorganization before the actual bankruptcy filing, allowing the company to emerge from Chapter 11 more quickly. Mrs. Fields has about 1,200 franchised and licensed locations around the world under the names Mrs. Fields Cookies and TCBY.
Mrs. Fields said in June it had support from holders of 78 percent of its senior debt for an out-of-court restructuring. The company said at the time that it would file a prepackaged bankruptcy if it didn't get 98 percent approval from senior noteholders.