Planet Hollywood: No changes in LV

Thursday, Aug. 19, 1999 | 11:04 a.m.

Planet Hollywood has no plans to shut down or cut back at either of its properties in Las Vegas as a result of its likely bankruptcy, the founder and chief executive officer of the Orlando, Fla. chain said.

"It is one of the company's most successful locations, continues to be, and we're very committed to the area," Robert Earl said Wednesday. "It's business as usual and nothing has physically changed."

Planet Hollywood operates a restaurant in the Forum Shops at Caesars. It also operates an All-Star Cafe in the Showcase mall on the Strip.

Responding to national reports that Planet Hollywood wanted to sell off its nine All-Star Cafes, Earl said the company was "in dialogs with the landlord and joint-venture partners" about selling an interest in the Strip restaurant. But he emphasized that the company wants to retain an interest in the restaurant.

Planet Hollywood announced Tuesday that it has reached an agreement in principle with a bondholders committee to restructure payments on more than $250 million in debt. The company has been in default on that debt since April. The restructuring would involve the voluntarily filing of Chapter 11 bankruptcy toward year's end. The plan also calls for the company's two largest shareholders to invest an additional $30 million in the company.

The plan must be approved by holders of more than $160 million in bonds to take effect.

"Planet Hollywood has had a financial cloud hanging over it for some time," Earl said. "Once bondholders approve this, we're out of those financial problems."