Planet Hollywood and its affiliated companies are suing Miami-based BankUnited over roughly $6 million in Paycheck Protection Program debt, claiming that it should have been forgiven under the Coronavirus Aid, Relief and Economic Security Act.
In a lawsuit filed last week, the restaurant chain claimed that the COVID-19 pandemic-era economic stimulus would have saved at least $4.5 million “but for the fraud, negligence, and misrepresentations of BankUnited.”
The plaintiffs and Planet Hollywood International applied for and received a consolidated PPP loan of more than $7 million, which was funded April 20, 2020. The following month, BankUnited allegedly forced the plaintiffs to abandon the original loan and enter separate loan agreements for each entity with different federal Employer Identification Numbers. BankUnited claimed this was necessary to comply with the Small Business Administration's May 4, 2020, interim final rule.
However, the lawsuit contends that the rule did not apply retroactively to loans disbursed before April 30, 2020. The restructured loans fell under the rule's $20 million single corporate group cap called the corporate group limitation, making them ineligible for forgiveness.
Moreover, BankUnited allegedly earned more than $125,000 in additional loan origination fees by forcing the creation of seven new separate loans.
Planet Hollywood now owes the Florida lender $6 million for allegedly mishandling PPP loans. However, around $4.5 million of the loan would have been forgiven if not for BankUnited's alleged “fraud” and “negligence,” the lawsuit claimed.
“But for BankUnited's misrepresentations, fraud, false statements, coercion, threats, and misconduct in forcing Plaintiffs to reapply for PPP loans it claimed violated the [rule] mandates despite the rule's plain and unambiguous language, Plaintiffs' Original Loan would have qualified for forgiveness by the SBA,” according to the lawsuit. “Instead, due to BankUnited's actions, Plaintiffs are left with millions of dollars in debt.”
Further, the plaintiffs alleged that BankUnited had more knowledge and expertise than Planet Hollywood regarding banking, the CARES Act and PPP, and access to information and SBA staff.
The companies are suing BankUnited over fraudulent misrepresentation and negligence.
Planet Hollywood is seeking full compensation for unforgiven loans and accumulated interest that the plaintiffs are obligated to repay in connection with their PPP loans that would have been forgiven, as well as any other remedies the court deems appropriate.
Planet Hollywood, for its part, has faced financial challenges throughout its existence. In 1999, it applied for Chapter 11 bankruptcy, citing revenue loss. In 2000, it exited Chapter 11 with a reorganization plan and applied for Chapter 11 bankruptcy again in October 2001. In April 2025, PB Restaurants, the operator of Planet Hollywood restaurants in New York City’s Times Square and Los Angeles International Airport, filed for Chapter 11 bankruptcy. The LAX location permanently closed in April. As of May 2025, three Planet Hollywood restaurants remain operational.
