<P> In the early 1970s, Britain and Iceland almost got into a shooting war over fishing rights after Iceland unilaterally implemented the 200 - mile (370 km) fishing limit; there were numerous confrontations between vessels, some armed and others with armed escort ships . These events were called the "cod wars". Cod prices went from the low $2 range to mid - $3, which sent the low - priced fish restaurants into a tailspin, and all the companies retrenched . </P> <P> On November 21, 1979, Orange Co. sold Arthur Treacher's to Mrs. Paul's . However, under the terms of its original sale - leaseback agreements, Orange Co. remained liable for millions of dollars of payments to investors . </P> <P> Mrs. Paul's promptly replaced the Icelandic cod with less expensive pollock that was oilier and of inferior quality . The move exacerbated tensions with franchisees--some of whom had already withheld a total of $5 million in royalties for what they perceived to be a steadily declining level of service . Litigation arising from the conflict eventually reached the United States Court of Appeals for the Third Circuit . </P> <P> After losing the case to the franchisees and having no way to compensate them, Mrs. Paul's sold Arthur Treacher's to Lumara Foods of America Inc. in March 1982 . Lumara Foods filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code four months later . </P>

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