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Gold’s Gym files for bankruptcy amidst COVID-19 lockdowns

Gold’s Gym files for bankruptcy amidst COVID-19 lockdowns
Gold’s Gym files for bankruptcy amidst COVID-19 lockdowns

Gold’s Gym, the renowned American multinational fitness chain, has reportedly filed for bankruptcy after the coronavirus pandemic forced the closing of branches throughout the U.S. as well as the world.

Adam Zeitsiff, president and CEO, Gold’s Gym confirmed that the fitness chain has gone bankrupt, stressing that while the firm was not doing so well, it is not going out of business.

Zeitsiff stated that the COVID-19 pandemic had adversely affected the company, deeply and also in many different ways. Zeitsiff also confirmed the permanent closing of nearly 30 Gold’s Gym outlets in the U.S.

The company is diligently working non-stop to reopen its remaining company owned outlets and that the firm has also been working alongside  other franchisees that were forced to close on a temporary basis.

The total number of Gold’s Gym across the globe stand at approximately 700, which also includes franchised gyms in Port Kennedy, Miranda, Rockingham, Fyshwick, Mandurah, and North Sydney in Australia. Though these branches would not be affected by the chain filing for bankruptcy in the U.S.

The organization reportedly released a statement that confirmed that in an effort to encourage the financial restructuring of Gold’s Gym, it had filed voluntary relief petitions under Chapter 11.

The filing, which is pre-negotiated, would enable the company to come out of these conditions stronger and ready to grow further. The statement added that it is the aim of the company to be on the other side of the Chapter 11 if not sooner, then by August 1.

The global coronavirus pandemic caused the company to take instant action, which also included the decision to close nearly 30 gyms permanently in order to retain the strength as well as growth potential of the brand to facilitate the continued viability of Gold’s Gym over the coming years.

In addition, the filing is not expected to affect the licensing division of the company, since it is not linked with any of the franchise gyms that are locally owned. It would also not stop the company from supporting its network of more than 700 gyms across the globe.

Source credit: https://www.news.com.au/finance/business/other-industries/golds-gym-goes-bankrupt-amid-coronavirus-lockdowns/news-story/b9e1d777d622d06094962a746fe1d597