Since emerging from Chapter 11 protection in May 2000, the chain has closed 30 restaurants, leaving it with 50 sites worldwide, industry consultants tell GlobeSt.com.
Planet Hollywood officials couldn't be reached at GlobeSt.com's publication deadline to learn where other near-future closings are planned. About 60,000 sf of now-vacant space are involved in the Atlanta and Seattle closings, area brokers tell GlobeSt.com on condition of anonymity.
"I know they tried awfully hard to work with Downtown Atlanta officials to make their restaurant a go, but there didn't seem to be the amount of pedestrian traffic they needed in order to survive," an Atlanta area retail broker tells GlobeSt.com on condition of anonymity. The Atlanta restaurant is at Peachtree Street and International Boulevard in the central business district.
The closings follow Planet Hollywood's previously reported second quarter earnings results for the period ended July 1. The company lost $14.24 million or $1.43 per share versus a net income loss of $38.89 million or a loss of 72 cents per share in second quarter 2000.
For the first half, Planet Hollywood lost $24.87 million or a loss of $2.49 per share compared to a first-half loss last year of $52.21 million or a loss of 64 cents per share, according to the company's 10-K form filed with the Securities and Exchange Commission.
First-half revenue was $69.62 million versus $88.91 million a year ago. Second-quarter sales totaled $36.39 million compared to $45.41 million in the same period last year.
Food, beverage and merchandise sales in the second quarter decreased 18.3% to $35.3 million from $43.2 million. Total revenue has been sliding since 1998 when volume hit $367.29 million. In 1999, the number was $272.23 million and in 2000, the total was $170.25 million.
Based on this year's first-half total, industry watchers estimate total revenue for 2001 will be lucky to reach $150 million, the lowest the company has recorded.
The company voluntarily filed for protection from its creditors under Chapter 11 of the U.S. Bankruptcy Code in October 1999 and came out of protection in May 2000 with a court-approved reorganization plan.
Among the major shareholders who collectively own 70% of the company are Robert I. Earl, the British-born chairman/CEO; Saudi Prince Alwaleed bin Talal, the controlling principal of Kingdom Planet Hollywood Ltd., Saudi Arabia; Singapore billionaire Ong Beng Seng, the lead principal of Leisure Ventures; Bay Harbour Management of New York; and Magnet Light Profits, a subsidiary of Star East Holdings Ltd.
The company's common was trading Sept. 21 on the Over-the-Counter Bulletin Board at 30 cents per share on volume of 100, unchanged from Sept. 7 but down from 55 cents on Aug. 16. On Aug. 16, the company's market capitalization was $5.5 million and there were 10 million shares outstanding.
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