Mrs. Fields Said to Be Near Ceding Control to Creditors
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Mrs. Fields Famous Brands LLC may cede control to creditors including Carlyle Group LP and Z Capital Partners LLC by swapping debt for equity to avoid bankruptcy, said four people with knowledge of the plan.
The cookie company, which also owns frozen-yogurt maker TCBY, hired Houlihan Lokey to advise on the proposed exchange, said the people, who declined to be named as terms are private. Mrs. Fields, based in Salt Lake City, may file for a prepackaged bankruptcy if the swap isn’t approved by next month, they said. Mrs. Fields confirmed an offer to refinance debt in a statement today.