* Acquired a 3 year, $10 million senior term credit facility from a select group of its note holders that will be used, in conjunction with cash flows from normal operations, to support the Company’s go-forward operations and working capital needs; and
* Improved the company’s balance sheet by exchanging bondholder debt for cash, new bonds and a controlling equity stake in the reorganized company.
“This is a remarkable day for everyone associated with Mrs. Fields,” says Michael Ward, interim co-CEO. “We are very pleased to have a confirmed Plan of Reorganization only 40 days after filing our prepackaged bankruptcy petitions, and see this as a testament to the hard work of our outstanding employees, franchisees and vendors, and to the dedication of our loyal customers.”
Through the bankruptcy process, Mrs. Fields was effectively able to address both long and short-term financial challenges and create a solid foundation for the future success of its brands. The Company now has a stronger balance sheet and the cash to fund both operations and growth within each of its business units: franchising, gifting, branded retail, and licensing.
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