By Karyn Scherer
Force Corporation, the property company behind Auckland's new $75 million entertainment centre, has decided to bail out New Zealand's first Planet Hollywood restaurant after a fruitless search for a local backer.
Force, which jointly runs the 12-screen multiplex in the newly opened central city centre, refused to say yesterday
whether it had decided to put up its own money to ensure the restaurant opened to the public later this year.
However, it is understood an announcement will be made next month. The move follows a two-year search for a local investor.
The hunt was thwarted by serious financial problems facing the American-based company which founded the chain.
The movie-theme chain, associated with celebrity investors Sylvester Stallone, Arnold Schwarzenegger and Bruce Willis, is in serious financial trouble in America and Europe.
The chain plans to close up to 20 of its 80 restaurants after losing more than $US243 million ($NZ466 million) last year.
It confirmed yesterday that it would restructure to try to stave off bankruptcy.
The Singaporean company with the rights to Planet Hollywood in this part of the world said it was a "completely separate" company, even though the two companies shared a common investor, Singaporean hotelier Ong Beng Seng.
The managing director of Planet Hollywood Asia, Michael Brunner, said he was confident the Auckland restaurant would open in either late October or early November.
Work finally began on the interior of the restaurant yesterday, three weeks after the Force Entertainment Centre, which has been plagued by construction delays, opened its doors to the public.
It is understood Force has agreed to put several million dollars into the Planet Hollywood venture.
In May, Planet Hollywood Asia dropped its asking price for a half-share of the franchise from $2.8 million to $1.8 million, and agreed to waive its franchise fee, during talks with businessman Sir Roger Bhatnagar, who pulled out at the last minute.
He said that he had gone cold on the deal because the Singaporean company wanted too big a slice of the restaurant's sales. He was also concerned about the chain's financial woes in America and Europe.
However, Barfoot & Thompson broker Bill Ludbrook, who has been handling the deal, said: "He was offered a fantastic deal but the reality was he just got pipped at the post [by Force]."
