Mrs. Fields Gets Go-Ahead in Bankruptcy Proceedings

(MoneyWatch)  In a quick look at the ongoing struggles of Mrs. Fields Famous Brands, a glimmer of hope came out of bankruptcy court late last month. According to Eric Schroeder of foodbusinessnews.net, the Salt Lake City company that makes those scrumptious cookies and owns the yogurt chain, TCBY, has been approved for all its first round of motions. So basically it can continue to pay employees and continue operations.

On August 15, Mrs. Fields filed for chapter 11 bankruptcy because it could not cover its interest payments that included $10.25 million due in September. The company has also faced loss in demand as people have cut back on discretionary spending, like buying sweets in the mall.

"We were very pleased with the court's positive response to our first day motions," said Michael Ward, interim co-chief executive officer, as quoted in Scroeder's article. "Receiving approval so quickly places Mrs. Fields in the best possible position as we move toward completing our restructuring."