NEW YORK — Celeb restaurant chain Planet Hollywood Intl. emerged from U.S. Bankruptcy Court Friday with a second chance to make a go of its struggling business.
“We’re back in the game,” chairman-CEO Robert Earl told Daily Variety.
A bankruptcy judge has officially signed off on the company’s restructuring plans, which call for Earl and an investor group to inject $30 million into the pared-down chain, which now includes 22 locations in North America.
Bondholders of the old Planet Hollywood will be issued new bonds of the reconstituted company as well as a 26% equity stake. A total of $250 million in notes were outstanding last year when Planet Hollywood defaulted on interest payments. Earl’s group, which includes Saudi Prince Al Waleed bin Talal and Singapore billionaire Ong Beng Seng, will control 70%.
Sylvester Stallone, Demi Moore, Bruce Willis and Arnold Schwarzenegger were initial investors and founders of the chain along with Earl, who said he’s partnered up with more Hollywood heavyweights to lend their names to the Orlando-based company. He won’t say who those celebs are for a few weeks. “It’s a fairly large group from all walks of entertainment. It skews very young,” he said.
Planet Hollywood stock, which once traded at more than $30, was yanked off the New York Stock Exchange and has been trading thinly over the counter for about 15¢ a share. Earl said the company will relist on the Nasdaq market in about a month.
Now Planet Hollywood will focus on its core sites, hyping up “the concept of movies and entertainment” in each eatery. It’s also “jazzed up the menu,” Earl said.