Planet Hollywood restaurant at issue as Aladdin takeover application is heard

Wed, Aug 11, 2004 (11:10 a.m.)

One of the many unresolved questions regarding a partnership's bid to take control of the Aladdin hotel-casino in a few weeks involves the Planet Hollywood restaurant up the street.

A group led by Robert Earl, one of the co-founders of Planet Hollywood Inc., is due to appear before Nevada gaming regulators today in its bid to turn the Aladdin into the Planet Hollywood hotel-casino.

But what will happen to the movie memorabilia-themed restaurant at the Forum Shops at Caesars, located in the heart of one of the busiest shopping malls in the world?

That mystery intensified earlier this year when a subsidiary that operates the 23,000-square-foot restaurant filed a lawsuit against the Forum Shops over the removal of a Planet Hollywood sign atop the building.

Now, although the lawsuit remains unresolved, the sign has reappeared.

Planet Hollywood's local attorney, Lawrence Semenza, said the case is still alive because the restaurant suffered a decline in revenue during the time the sign was down.

"We're in the early stages of the case, we're starting to exchange documents, review witness lists, things like that," Semenza said.

"But during the period of time that the sign was down, the restaurant had a drop in revenue," he said.

The suit originally was filed in March in Clark County District Court by Planet Hollywood (Region VI) Inc. against Forum Developers LP.

In it, Semenza said under a 1993 lease agreement, a "unique outdoor monument sign" directed at Las Vegas Strip pedestrians and motorists advertised that the restaurant was inside the mall, which is attached to the Caesars Palace hotel-casino.

The suit documented Planet Hollywood's continued operation of the restaurant, even while the parent company was embroiled in U.S. Bankruptcy Court twice in four years. In February 2000 and again in March 2003, the company was authorized by Bankruptcy Court judges to assume the 1993 lease.

But also in March 2003, the Planet Hollywood sign came down. The suit accuses Forum Shops officials of "causing significant damage to the sign" when they removed it.

The case is being heard by Judge Mark Denton.

The suit alleges breach of contract, asking the court for a declaration determining the company's rights under the lease agreement.

In an April court response, Martin Little, an attorney for the Forum Shops, denied the suit's allegations and said the removal of the sign was only temporary. Officials couldn't be reached for comment on why the sign was taken down and whether its removal was related to ongoing construction for a major expansion of the Forum Shops.

Now, the sign is back. Semenza said he didn't know when it was replaced and Little could not be reached for comment.

Through a spokeswoman, Earl said that the suit would move forward, since the restaurant had a drop in revenue, the amount of which was not disclosed.

Earl also emphasized that contrary to published reports, it's his intent to continue to operate the Planet Hollywood restaurant at the Forum Shops regardless of the planned retheming of the Aladdin property to a Planet Hollywood-themed hotel.

Earl and his partners -- Bay Harbour Management LC, New York, and Starwood Hotels and Resorts Worldwide Inc, White Plains, N.Y. -- were to appear today at the Gaming Control Board meeting in Carson City.

The Nevada Gaming Commission, which will consider the Control Board's recommendation on the case, meets Aug. 26 in Carson City.

Earl said he hopes to take over operation of the Aladdin property by early September.

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