Hurt by the drop in tourism following the September 11 attacks, Planet Hollywood International filed for bankruptcy for the second time in two years.
The Orlando, Florida-based restaurant company, which was backed by celebrity investors such as Bruce Willis and Sylvester Stallone when it formed a decade ago, filed a petition Friday in US Bankruptcy Court in Orlando. The company filed for bankruptcy under a law that frees it from the threat of creditors' lawsuits while it reorganizes its finances.
Just last year, the company emerged from bankruptcy proceedings in Wilmington, Delaware, after agreeing to shed debt and restructure. The company was on the road to financial health before the terrorist attacks caused potential tourists to stay home, said chairman and chief executive officer Robert Earl.
"It's symptomatic of what's happening everywhere," Earl said. The company at one time owned 40 restaurants around the world and there were another 35 or so franchises. The company currently owns 10 restaurants and there are 25 franchises. Bureau Report