COVID-19 Spurs Gold’s Gym Bankruptcy Filing
GGI Holdings LLC, Dallas-headquartered parent company of Gold’s Gym, filed voluntary petitions for relief under Chapter 11 Monday in an effort to facilitate the financial restructuring of the company. The filing doesn’t affect the majority of the fitness chain’s nearly 700 locations, most of which are owned by franchisees.
“The global COVID-19 pandemic spurred us to take immediate action, including the difficult but necessary decision to permanently close about 30 company-owned gyms, to maintain the strength and growth of the potential of the brand, as well as ensure the continued viability of the company for decades to come,” the company said in a statement.
“We have been working with our landlords to ensure that the remaining company-owned gyms re-open stronger than ever coming out of this pandemic,” according to the statement. The company expects to emerge from Chapter 11 protection “by August 1, if not sooner.”
Pictured: A Gold’s Gym facility in Uptown Dallas.
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