Gold’s Gym files for Chapter 11 bankruptcy amid coronavirus crisis
Gold’s Gym has filed for Chapter 11 bankruptcy after the coronavirus forced it to shut down its workout venues nationwide.
The fitness chain stressed that it’s not going out of business even though the crisis forced it to permanently close 30 company-owned locations. The company plans to work through the restructuring process by Aug. 1 so it can continue to support is nearly 700 gyms around the world, president and CEO Adam Zeitsiff said.
“Gold’s Gym has been the world’s trusted fitness authority for going on 55 years, and we are absolutely not going anywhere,” Zeitsiff said in a video message announcing the Monday bankruptcy filing.
Texas-based Gold’s doesn’t expect the restructuring to affect its franchisees, who are responsible for more than 600 of its gyms in the US and internationally.
The coronavirus has proved a significant bump in the road for Gold’s, whose original location in Venice, Calif., is known as the “Mecca of Bodybuilding.”
The pandemic kneecapped the company after it posted its strongest year of worldwide growth in 2019, it said. Gold’s said it was the first national gym brand to close its roughly 95 corporate-owned locations to stem the spread of the virus, and its franchisees have had to follow suit.
Gold’s plans to reopen gyms with social distancing and other safety protocols in place once local officials give the go-ahead, Zeitsiff said. The company is also offering free access to video workouts so members can exercise at home.
Gold’s filed for bankruptcy the same day as J.Crew, the iconic preppy retailer that has also shuttered its stores amid the pandemic.
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