Planet Hollywood bankruptcy - the sequel
Planet Hollywood has filed for bankruptcy for a second time, blaming the knock-on effects of September's terrorist attacks which impacted its core business.
In a Securities Exchange Commission statement, the Movie-themed restaurant chain said it had filed voluntary petitions for Chapter 11 reorganisation because of the decline in tourism and cancellations of conferences caused by the terrorist attacks in America.
It said its business slowed suddenly after the attacks and ‘created an untenable position for the company just as it had been re-establishing its financial footing’, and that the threat of terrorism had caused tourists to shy away from the high-profile destinations where the company has most of its outlets.
The company, which emerged from the red in January 2000, returned to the US bankruptcy court on Friday with £ 93.4m ($133m) in debt against £85m ($121m) in assets.
Planet Hollywood said it would continue to operate its restaurants, which include one near London’s Piccadilly Circus, and go ahead with its plans to open two more in Asia.
It added that it intends to develop a new fundraising plan which would allow it to remain in operation until tourism picks up again.
Chief executive Robert Earl said Planet Hollywood could emerge from bankruptcy in the first quarter of 2002, depending on the situation in the tourism industry.
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