Planet Hollywood emerges from bankruptcy
By Jane Sutton
MIAMI, Jan 21 (Reuters) - Movie-themed restaurateur Planet
Hollywood International Inc. <PLHYA.OB> emerged from a
bankruptcy makeover on Friday -- slimmer, more focused and
planning a face-lift.
The Orlando, Fla.-based company, which gained cachet from
early backers such as movie stars Arnold Schwarzenegger,
Sylvester Stallone and Bruce Willis, has signed up "a bunch of
new celebrities," the company's president, Robert Earl, told
Reuters.
The new lineup, to be announced in three or four weeks, is
part of an effort to reinvigorate Planet Hollywood now that its
reorganization is complete.
A U.S. bankruptcy court judge in Delaware signed off on
Friday on the reorganization plan, which forecasts a return to
profitability in mid-2003. Earl said the final agreement sticks
with the proposals outlined back when the company sought
Chapter 11 protection from creditors in October.
Holders of $250 million in bonds became shareholders with a
26.5 percent equity stake in the company. The company will get
a $30 million cash infusion from an investment group made up of
Earl, Prince Alwaleed Bin Talal of Saudi Arabia and Singapore
billionaire Ong Beng Sengand, who hold 70 percent of the stock.
Earl, the company founder, remains president, chairman and
CEO of Planet Hollywood, which now has 22 company-owned stores
in North America, down from 31. It shut nine poorly performing
outlets just before entering bankruptcy, though it plans to
reopen two of those in new locations, Earl said.
The Beverly Hills, Calif., restaurant, hampered by a ban on
alcohol sales after 11 p.m., will reopen in Los Angeles. The
Miami restaurant, formerly in the Coconut Grove neighborhood,
will reopen elsewhere, possibly in glitzy South Miami Beach,
Earl said.
He blamed Planet Hollywood's woes on its rapid
overexpansion and said the company would focus on solidifying
its remaining profitable restaurants rather than opening more
outlets.
"It's going to be heads down for a year or two without any
growth," Earl said. "Our numbers are starting to rise again on
the food and customer counts. Our arrival in Chapter 11 was
highly publicized and took its toll."
He said the company had revised its menu but would keep its
format that featured movie costumes, props and memorabilia
because "that's very popular."
"We continue to have many millions of happy customers,"
Earl said. "I'm excited about the future and we intend to have
a rapid comeback."
Planet Hollywood shares traded at 14 cents in afternoon
trading Friday, down one cent from Thursday. Since the company
entered bankruptcy court, its stock has been thinly traded
over-the-counter issue. The stock's 52-week high was $4.25.
The company previously traded on the New York Stock
Exchange, starting with its initial public offering in 1996. It
aas delisted in August.
"We expect to be trading on the Nasdaq within a month,"
Earl said.
((--Miami Bureau, 305-374-5013))
REUTERS
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