Planet Hollywood has closed nine of its 32 United States restaurants ahead of a planned bankruptcy filing.
The Orlando-based company plans to file bankruptcy petitions Wednesday [New Zealand time] in Delaware, and will soon file its reorganisation plan, the company said in a news release Monday evening.
The company's restructuring plan also calls for upgrading several of its movie-themed restaurants and menus.
Scoop reports that the Auckland Planet Hollywood operates as a seperate company and runs financially independent from the United States chain.
The United States operations which closed Tuesday [New Zealand time] were in Chicago, Costa Mesa, Calif.; Fort Lauderdale, Fla.; Gurnee, Ill.; Houston; Indianapolis; Maui, Hawaii; Miami and Phoenix.
There may still be a couple of
additional closings or franchise conversions, the
As part of the reorganization, Planet Hollywood International Inc.'s two largest shareholders and a trust for Earl's children have agreed to provide a $30 million cash infusion to help keep the international chain of glitzy restaurants going.
The planned bankruptcy filing is the latest setback for the operator of nearly 80 Planet Hollywood restaurants.
Former president William Baumhauer resigned in June, just three months after the company's co-founder resigned his board position.
Keith Barish, who started the venture with Earl and actors Sylvester Stallone, Demi Moore, Arnold Schwarzenegger and Bruce Willis, left the company in March.
The company has been trying to cut operating costs by reducing corporate overhead, putting in cost-control systems, streamlining store-level operations and disposing of nonessential corporate assets.
Despite those moves, analysts have said aggressive expansion and increased competition have hurt the company.