991033 Planet Hollywood Closes Two RestaurantsOctober 16, 1999Miami - Planet Hollywood International Inc., the once-glittering restaurant chain backed by movie stars Bruce Willis, Sylvester Stallone and Demi Moore, dropped the curtain on at least two restaurants. Calls to the Miami and Fort Lauderdale outlets of the trendy, movie-themed chain were answered with a recording that said: “Unfortunately Planet Hollywood has permanently closed for business as of October 11, 1999.” Restaurants in Key West and Orlando, however, were operating. One company official, who asked not to be named, said the closures were part of the restructuring plan the company announced in August. No further details were immediately available from the restaurant chain's headquarters in Orlando, Florida. The chain, serving hamburgers and other American favourites, relied on the appeal of its star backers and movie memorabilia decor to draw customers. Planet Hollywood shares were delisted on the New York Stock Exchange in August. The stock now trades on the OTC Bulletin Board. The Orlando Sentinel reported Monday that rumors have been swirling about the company that it could be shutting 20 to 38 outlets. Company officials blamed the 8-year-old company's faltering financials on too-rapid growth and over-aggressive borrowing. Planet Hollywood has nearly 80 restaurants in the United States, Europe, Asia, Australia, Africa and elsewhere. The global hamburger chain's shareholders include financial heavyweights Prince Alwaleed Bin Talal and Singapore billionaire Ong Beng Seng. The restaurant has had a string of money-losing quarters and defaulted on debt payments in April. The company has been working on a plan to restructure $250 million in company debt and plans to file for Chapter 11 bankruptcy reorganization by the end of October.
|
