5.5.20

Gold's Gym Files Chapter 11 Bankruptcy Protection

imageRenowned American gym chain Gold’s Gym has filed for chapter 11 bankruptcy protection on Monday.

According to Buisness Insider, the gym was previously forced to temporarily close various of its locations across the U.S. due to new regulations on businesses amid the coronavirus pandemic. The company later announced that 30 of its company-owned locations would close permanently, before filing for bankruptcy protection.

“We want to be 100 percent clear that Gold’s Gym is not going out of business,” said President and CEO Adam Zeitsiff in a press release. “The brand is strong, and we’ll continue to innovate and grow our digital business, our licensing program and our global footprint as we focus on serving our millions of members across the world.” He also pointed out that the filing would only affect company-owned locations, which constitute roughly 10 percent of the 700 global locations, and that Gold’s Gym hopes to reemerge stronger after the proceedings by August 1: “To be clear, the filing should not impact our licensing division, it is not associated with any of our locally-owned franchise gyms, nor will it prevent us from continuing to support our system of nearly 700 gyms around the world. While the COVID-19 pandemic certainly impacted our company-owned gym operations, we expect the filing will have no further impact on current operations.”

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