Houston's Landry's Still Ogling to Buy Planet Hollywood

If the judge approves the Chapter 11 restructuring, Planet Hollywood would still be open to takeover offers, Planet officials have told the court.

Landry's Seafood Restaurants Inc., a 22-year-old, Houston-based chain, is knocking on Planet's door, even though Planet has vacated about 200,000 sf of restaurant sites in six markets over the past 90 days.

In December, Landry's offered to loan Planet Hollywood $2.5 million in short-term financing but the court rejected the plan. Landry would have had an inside track to buying Planet at a later date if the loan offer had been accepted, court deputies tell GlobeSt.com on condition of anonymity.

Planet also has until June to decide if it will continue to honor leases on nine locations. The company has agreed to pay the rent and other expenses at six other leased properties. At its peak, Planet operated 60 restaurants in three countries in 1999. The chain now has 10 company owned locations and 22 franchised sites in 18 countries.

Planet Hollywood first filed for Chapter 11 protection from its creditors under the U.S. Bankruptcy Code in October 1999 and completed a court-approved reorganization plan in May 2000. That reorganization was short-lived, however. The company filed for protection again on Oct. 15, 2001. Planet listed assets of $121 million and liabilities of $131 million.

Planet Hollywood common stock is no longer listed on the Over-the-Counter Bulletin Board. The stock traded on Nov. 28 for nine cents per share with 10 million shares outstanding. The company's market capitalization at that time was shown as $900,000.