By KAREN SCHERER
An Auckland real estate agent is suing the Asian arm of the Planet Hollywood chain, claiming it owes him more than $100,000 in commission.
According to papers filed in the Auckland District Court, Barfoot & Thompson agent Bill Ludbrook is demanding payment he says he is owed after spending several months trying to find an investor for an Auckland outlet of the chain.
Mr Ludbrook, who worked for five years securing tenants for the $75 million Force Entertainment Centre in central Auckland, claims he was hired in February 1999 to sign up a partner for the movie-themed restaurant.
Despite intense negotiations with multi-millionaire Sir Roger Bhatnagar, he received no payment. Planet Hollywood instead struck a deal with listed property company Force Corporation.
Mr Ludbrook is claiming $112,500 from the chain, maintaining that under the terms of his agreement it is still obliged to pay him.
The Singapore-based managing director of Planet Hollywood Asia, Michael Brunner, refused to comment yesterday.
Mr Ludbrook said Force was fully aware that a marketing campaign was under way and had complicated matters by dealing directly with Planet Hollywood.
"This matter is going to be resolved one way or the other by a New Zealand judge in a New Zealand court - end of story."
Force Corporation chairman Peter Francis said last night the company was unaware of the legal action.
It was no secret Force would have preferred Planet Hollywood to find another partner, he said.
"We were very happy for someone else to do it, but at the end of the day we had to get it under way."
Mr Francis said he was concerned that delays in opening the restaurant could jeopardise its deal to sell the centre to an Australian property trust.
As it happened, the Australian trust is still trying to pull out of the deal and the sale has yet to be agreed.
Planet Hollywood was one of the first tenants to sign up for the Force Entertainment Centre five years ago.
However, the company struggled to find a New Zealand partner, and it was forced to drop its sales forecasts and the price it wanted from potential investors.
Although it was initially looking for a 50 per cent partner, it eventually struck a deal with Force that required it to contribute just 20 per cent of the joint venture.
It also agreed to waive its franchise fee and royalties in return for a 2 per cent management fee.
The search came at the same time the company's American arm, Planet Hollywood International, was trying to stave off bankruptcy.
The Florida-based company, which includes movie-star investors such as Arnold Schwarzenegger and Sylvester Stallone, filed for bankruptcy protection last October.
It has since restructured and in May it emerged from what is known as Chapter 11 after cancelling $US282 million ($650 million) in debt.
Its shares last traded at 2.5USc - a far cry from their initial price of $US18 when the company publicly floated in 1996.
Planet Hollywood owes me: agent
AdvertisementAdvertise with NZME.