NEW YORK, U.S.A: Cookie retailer Mrs Fields Famous Brands said last Friday that it plans to file for bankruptcy protection to help restructure its business, according to a United States Securities and Exchange Commission filing.

The US 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 reorganisation plan.

The company plans to continue doing business and has also hired Blackstone Advisory Services to explore a possible sale of TCBY, the largest US retailer of soft-serve frozen yogurt with live active cultures.

In Singapore, The Cookie Company Pte Ltd which holds the local licence, told soshiok.com that business continues as usual at its three city outlets and those at Changi Airport Terminal 3.

Said one of its directors: "Even if Mrs Fields has a new owner, we will still continue to operate the outlets and bake cookies according to Mrs Fields' recipes as the outlets here are wholly owned by us and we hold a Mrs Fields licence."

Despite Mrs Fields' problems in America, Mrs Fields in Singapore has expanded, from three stores to eight this year.

Its Orchard Cineleisure outlet has been remodelled and following suit will be its Raffles City outlet. Mrs Fields' third store in the city is located at Paragon. The other stores are in Changi Airport's Terminal 3.

In addition, Mrs Fields in Singapore will roll out its rich chocolate snow skin mooncake next week. And expect new flavours for it moist fruit muffins.

So Mrs Field Singapore is definitely not closing shop but making a stronger presence here.

Back in the US, restaurant and food companies have struggled this year as higher petrol prices and rising ingredient costs have eroded sales and profits.

“Food that is arguably discretionary is going to come under pressure when people don’t feel that they’ve got that discretionary income in their wallets,” said Ms Marti Kopacz, managing partner of the restructuring group at accounting firm Grant Thornton.

Mrs Fields said in the filing that it would have been unable to make an interest payment in September. The company has about US$196 million (S$277 million) in publicly-traded debt. Based in Salt Lake City, Utah, Mrs Fields was started in 1977 by Mrs Debbi Fields, a young mother who made cookies at her first location in Palo Alto.

It began franchising stores in 1990, and in 2000, it gained control of TCBY, which stands for “The Country’s Best Yogurt”, through a US$140 million cash buyout with Capricorn. Mrs Fields has struggled with declining sales throughout the past year. It has sold its Pretzel Time, Pretzelmaker and Great American Cookies since 2007.