(June 1, 1999) -- How does a $3 billion company with investors such as Sylvester Stallone and Arnold Schwarzenegger wither to become an $80 million company on the brink of bankruptcy? Sounds like a tall order, but Planet Hollywood (NYSE: PHL) did it in just three years... and made it look easy. Shares of the movie-themed restaurant reached an all-time high of $32 1/8 on April 19, 1996, the same day the company went public at $18 a share. It was, for the most part, downhill from there. The stock is now trading for under a buck.
How could this happen? That's what Fool Rick Munarriz (TMF Edible) wanted to know, and last Thursday he attended the company's annual meeting looking for answers. On the next few pages, you'll find a review of the meeting, a flashback to better days, and some insight on how the mighty Planet fell. What you find there may very well help you avoid a similar disaster in your portfolio.
Is there hope for Planet Hollywood? Can it be launched back into orbit? That's what we're asking you, Fool! And there's a trip to LA in it for the person with the best answer. Appoint yourself CEO of Planet Hollywood and tell us how you'll make Sly and Arnold (and other current Planet Hollywood shareholders for that matter) happy investors once again. After reading Rick's report, visit this page.