Nostalgic Restaurant Series #5 - PLANET HOLLYWOOD
Founded in late 1991 with celebrity backers like Sly Stallone, Bruce Willis, Demi Moore and Arnold Schwarzenegger, Plaanet Hollywood is a themed restaurant that built on Hollywood and celebrities.
Aggressive expansion took place throughout the 90’s, including adding a sports themed restaurant, Official All Star Cafe.
Running fast and furiously, Planet Hollywood went public in April 1996 and was listed on the NYSE.
Although its share price peaked at $32 on the first day of trading, by 1999 it was valued at less than $1 per share. This was as a result of too much diversification, rapid expansion, a lack of attention to food and service at it core concept and no clear strategy.
In late 1999 the company filed for Chapter 11 bankruptcy protection and attempted to reorganize by closing/selling underperforming locations. Exiting bankruptcy in May 2000 the company was reduced down to 35 locations from its peak of 60+ (25 were franchised).
Filing again for Chapter 11 protection in October 2001 (after being listed on NASDAQ in May 2000), the company showed a debt load of $135M.
As of the end of 2024, there are three locations operating with Hong Kong scheduled to open in 2025. The “chain” is a shell of its former self with no signs of being able to revive itself stateside and only international expansion on the horizon.
