A: Planet Hollywood seeks Chapter 11, shuts eateries
A: Planet Hollywood seeks Chapter 11, shuts eateries
ORLANDO, Fla., Oct. 11 (UPI) _ Planet Hollywood, the theme restaurant
chain backed by stars such as Sylvester Stallone, Demi Moore and Bruce
Willis, announced Monday it would shut almost one-third of its 32
outlets in the United States.
Planet Hollywood International Inc. said it would file Tuesday for
Chapter 11 bankruptcy reorganization in Delaware, where the company is
incorporated.
Nine restaurants were closed Monday, including one in Indianapolis,
where retail developer Gary Linder said the restaurant's business
suffered 'a huge drop' during its second year despite a prime
downtown location.
Before Monday's closings, the restaurant company owned 48 of its 70
locations worldwide.
Recorded telephone messages told customers the restaurants, which
feature movie memorabilia and stars' hand-prints, had been
'permanently' closed.
'Today is the first step in our plan to position Planet Hollywood for
a return to long-term profitability and healthy growth,' founder and
chief executive officer Robert Earl said in a statement issued from the
company's Florida office.
Executives with the theme restaurant giant said there could be 'a
couple of additional unit closures' or conversion of company-owned
restaurants to franchise operations.
The British-born Earl, who ran the Hard Rock Cafe before starting
Planet Hollywood in 1991, said the restaurants that are not being
closed will get upgraded menus and 'will generate positive cash
flow.'
Planet Hollywood lost $244 million in 1998 and was delisted from the
New York Stock Exchange in August.
A recent Securities & Exchange Commission filing said that Earl,
Singapore billionaire Ong Beng Seng and Saudi Prince Alwaleed bin Talal
each planned to put up $10 million to recapitalize the business.
Celebrities including Arnold Schwarzenegger, Stallone, Willis and Moore
held investments in the early days of the company, which became
publicly traded in April 1996. _- |
