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Strategies & Market Trends : LastShadow's Position Trading -- Ignore unavailable to you. Want to Upgrade?

To: kendall harmon who wrote (11711)	3/30/1999 8:16:00 AM
From: Susan Saline	Read Replies (2) \| Respond to of 43080

PHL last 1 1/8 might try the clearance rack today am thinking a .25 (quarter) would be a steal, for a bounce Monday March 29 7:42 PM ET Planet Hollywood to miss debt payment By Michael Connor MIAMI (Reuters) - Struggling theme-restaurateur Planet Hollywood International Inc (NYSE:PHL - news) said it will not make a $15 million interest payment due Thursday, and was in talks with lenders to rework some existing debts. The once high-flying group, now seeking to end losses by courting repeat customers at its movie memorabilia-filled outlets, also said Monday that sales fell 19 percent during its fiscal fourth quarter at locations open 12 months or longer. Planet Hollywood said it was in talks with potential investors and lenders about restructuring its debts and would not make a $15 million interest payment scheduled for Thursday on its 12 percent senior subordinated notes due April 1, 1999. The company has a 30-day grace period on the payment. The decision to skip the payment was widely expected, analyst Arnold Ursaner of CJS Securities in White Plains, N.Y., said. The Planet Hollywood notes had been trading at a significant discount recently, he said. Orlando, Fla.-based Planet Hollywood also reported a quarterly net loss of $228.2 million, or $2.09 a share, including a charge due mostly to restructuring, for the three months ended Dec. 27, 1998. The company had a net loss of $43.8 million, or 40 cents a share, in 1997's fourth quarter. Net sales dropped to $75.1 million in the fourth quarter from $102 million a year earlier, Planet Hollywood said in its year-end earnings report. The company, which two months ago announced an overhaul of its namesake restaurants and a corporate restructuring, reported full fiscal-year revenues of $387 million, down from $475.1 million, and a net loss of $243.9 million, or $2.23 a share. Planet Hollywood had 1997 profits of $8.3 million, or 8 cents a share. Comparable store sales were off 18 percent for the year, the company said. ''Planet Hollywood's results in 1998 were disappointing, and we are committed to stabilizing the operations in 1999 and returning the company to profitability in 2000 by revitalizing our core Planet Hollywood restaurant business,'' Chief Executive Robert Earl said. Planet Hollywood, whose owners include film stars and a movie producer, has said it wanted to get rid of non-Planet Hollywood restaurants and refurbish its namesake chain by redecorating and changing its menu. Planet Hollywood outlets in Orlando, Las Vegas, Paris and 27 places around the world will be repainted, refurnished and redecorated with lighter colors and brighter lights, the company said in January. Bars would be upgraded, and the menu and merchandise offerings, a high-margin business in the past, at the 30 biggest venues changed. Changes at 30 other Planet Hollywood restaurants would be more modest, at least at first. The company also said it would exit its Official All-Star Cafe line, planned hotels and other ventures. Planet Hollywood's turnaround effort comes amid weakness in entertainment restaurants and disappointing sales at studio stores selling movie and television-related merchandise like that sold at Planet Hollywood souvenir counters. ''They've got a real challenge. They are trying to appeal to kids, to tourists and to locals. You can't be everything to everybody,'' Ursaner said. Reuters/Variety