Finances worsen for LV Strip restaurateur

Friday, Aug. 13, 1999 | 10:50 a.m.

THE ASSOCIATED PRESS

ORLANDO, Fla. -- Planet Hollywood International's finances worsened in the second quarter with a $28.2 million or 26 cent per share loss.

One year ago, the company lost $1.2 million, or 1 cent per share. Revenues fell 27 percent, to $76.6 million. As of Aug. 12, the company has lost $62.9 million, or 58 cents per share, compared to a loss of $5.6 million, or 5 cents per share.

Planet Hollywood said it continues to be in default on various loans, but is continuing discussions with creditors. The company missed a $15 million interest payment in May.

Vornado Realty Trust announced last week it purchased Planet Hollywood's 20 percent stake in New York's Hotel Pennsylvania for $18 million, plus the assumption of $25 million in debt. At the same time, Vornado announced it was pulling out of a licensing deal to create an Official All-Star Hotel.

Planet Hollywood operates a restaurant in the Forum Shops at Caesars. It also owns the Official All-Star Cafe, located on the Strip at 3785 S. Las Vegas Blvd.

The once high-flying restaurant operator has fallen on hard times as many diners failed to return for repeat business because of what critics called the chain's tired food and theme; and high prices. Planet Hollywood has vowed to overhaul the theme in order to return to profitability.

archive