Planet Hollywood
to seek bankruptcy
protection
The Florida-based chain owns
From staff and wire reports
two restaurants in Waikiki
and one in LahainaORLANDO, Fla. -- Planet Hollywood International Inc., the struggling theme restaurant chain associated with actors Arnold Schwarzenegger, Sylvester Stallone and Bruce Willis, intends to file for Chapter 11 bankruptcy protection as it restructures.
But the company, which has three restaurants in Hawaii, today said it intends to continue normal operations.
As part of the restructuring, Planet Hollywood said it will focus on its core restaurants and "dispose of noncore businesses and unprofitable units."
It wasn't clear whether the three Hawaii restaurants -- a Planet Hollywood in Waikiki, one in Lahaina, and an Official All Star Cafe in Waikiki -- would be affected. A local executive directed calls to corporate headquarters, where officials were unavailable for comment.
Orlando, Fla.-based Planet Hollywood received $30 million from an investment group, including two of its largest shareholders, Saudi Prince Alwaleed Bin Talal and Singapore hotelier Ong Beng Seng, as part of the restructuring agreement. The investor group was organized by Robert Earl, the company's chief executive and founder.
The plan aims to resolve financial problems brought about in part by rapid expansion and subsequent declining sales.
A former Wall Street darling, the operator of Planet Hollywood and All-Star Cafe restaurants has had losses in four consecutive quarters. Planet Hollywood's shares sold for $18 each when the company went public in April 1996. Today, they were unchanged at 75 cents before trading was halted for news.
The restructuring needs the approval of holders of at least $160 million of its senior subordinated notes due 2005, Planet Hollywood said in a statement. It hopes to begin the restructuring before the end of the year.
Bloomberg News and Star-Bulletin reporter
Rob Perez contributed to this report.
