Planet Hollywood's 70 staff in Dublin will not be affected by the restructure planned under US bankruptcy laws, the restaurant's manager said yesterday.
The Florida-based chain, whose investors include a variety of movie, sports and music industry stars, said it has lined up a $30 million (€28 million) cash infusion, but was still negotiating the Chapter 11 bankruptcy filing.
The general manager of the Dublin branch, Mr Basil Vasiliou, said the problems would mean "nothing at all" for the Irish operation. The Dublin restaurant opened 18 months ago and was already the fourth most profitable in Europe, he added.
"The restaurant is doing well - we're busy planning our millennium party," Mr Vasiliou added.
While the precise ownership details of the Dublin restaurant remain unclear, it is known that the rock band U2 invested some money in the venture. In an interview with The Irish Times last year, the company's founder and chief executive, Mr Robert Earl, quipped about his relationship with the well-known show-business accountant, Mr Ossie Kilkenny: "The infamous Mr Kilkenny has been guiding me!" he said.
Other investors include Bruce Willis, Sylvester Stallone, Arnold Schwarzenegger and Whoopi Goldberg, with sports stars such as Wayne Gretsky, Tiger Woods and Andre Agassi backing the company's All Star Cafe outlets.
Yesterday, Mr Earl said Planet Hollywood would make the Chapter 11 filing sometime within the next two months. Among other things, the move would allow the company to get out of high-cost long-term leases in money-losing locations, he added. Mr Earl said "the majority" of restaurants would be kept.
The company has been trying to refinance $250 million of debt since April, when it defaulted on $15 million in interest payments to bondholders amid lagging sales at its restaurants.
Planet Hollywood is the latest in a number of themed restaurants that are struggling to overcome their major hurdle: luring customers back for repeat visits. Industry observers say high prices and mediocre food are two factors that have led to stalled sales at some locations.
Mr Earl said the new $30 million investment - which is tied to the approval of a restructuring plan - would come from three of Planet Hollywood's major shareholders, Saudi Arabian Prince Alwaleed Bin Talal and Singapore billionaire Mr Ong Beng Seng, along with a trust benefiting Mr Earl's children.
