Posted on: Saturday, October 20, 2001

Planet Hollywood in second bankruptcy

Associated Press

ORLANDO, Fla. — Hurt by the drop in tourism following the Sept. 11 attacks, Planet Hollywood International Inc. yesterday filed for bankruptcy for the second time in two years.

The Orlando, Fla.-based restaurant company, which was backed by celebrity investors such as Bruce Willis and Sylvester Stallone when it formed a decade ago, filed a petition for Chapter 11 reorganization in U.S. Bankruptcy Court in Orlando.

Just last year, the company emerged from bankruptcy proceedings in Wilmington, Del., after agreeing to shed debt and restructure.

The company was on the road to financial health before the terrorist attacks caused tourists to stop flying, staying in hotels and going to tourist attractions, said chairman and chief executive officer Robert Earl.

Many of Planet Hollywood's restaurants are at top tourist locations, including Hawai'i, Walt Disney World, the Las Vegas Strip, Times Square in New York and Piccadilly Circus in London.

"It's symptomatic of what's happening everywhere," Earl said.

The company at one time owned 40 restaurants around the world and there were another 35 or so franchises.

The company currently owns 10 restaurants and there are 25 franchises.