Asian link keeps restaurant alive

By Bob Dey

Planet Hollywood's first New Zealand restaurant is still on track for a June opening, although the American parent company is in serious financial strife.

The restaurant planned for the Force Entertainment Centre next to Aotea Square in Auckland will be operated by Planet Hollywood's Asian franchise holders, based in Singapore.

It will be owned jointly by Planet Hollywood Asia and a new local partner, expected to be decided next week.

The Florida-based Planet Hollywood International increased its fourth-quarter loss from $US44 million a year ago to $US228 million and said it was negotiating with its lenders.

The restaurant is an important feature of the new $75 million Force centre and Force Corporation's executive chairman, Peter Francis, said there were good reasons to believe the chain would proceed. Of the Planet Hollywood loss, $US170 million was a writedown of assets.

"They forgot they were a restaurant chain and also expanded too much with their All-Star Cafe chain. But our tenant is Planet Hollywood Asia, which signed up the lease two years ago when we picked up the development. Asia is operating well, and this is all go as far as the Asian guys are concerned."

Bill Ludbrook of Barfoot & Thompson Commercial, who has worked on the Planet Hollywood proposal for five years and promoted the opportunity for a local investor to buy in for $2.8 million, said Asian directors would be in Auckland next week.

He expected a quick decision on which of seven shortlisted investors was to be their partner.