Planet Hollywood opened 80 outlets on star power and filed Chapter 11 in 1999

Planet Hollywood opened in New York in 1991, a theme restaurant founded by entrepreneur Robert Earl with star investors including Sylvester Stallone, Bruce Willis, Arnold Schwarzenegger and Demi Moore. It served burgers, pasta and other American fare inside a dining room packed with movie memorabilia, and the formula worked so well that the company expanded across the US and abroad, going public in 1996 at $18 a share and peaking above $28.

Expansion outran the business. By August 1999 the stock traded at 75 cents, the company had defaulted on $15 million of interest on roughly $250 million of debt, and analysts said it had 'opened too many too fast.' In October 1999 Planet Hollywood filed for Chapter 11 in Delaware and closed 9 of its 32 US restaurants, including the flagship location.

The filing listed $359.1 million in debts against $392.1 million in assets, including more than $160 million in senior subordinated notes. The collapse had a simple mechanism: the company's stock had financed its expansion, and when the share price fell, the money stopped and the losses were exposed.

Planet Hollywood emerged from bankruptcy but the concept never recovered its shine. The case became a lesson in the difference between a marketing gimmick and a business: the celebrity names and props drew crowds for opening nights, but the food and value did not bring them back.