The fitness chain takes a hit from the coronavirus pandemic
By Nadine Halili | Photo by Anastase Maragos/Unsplash
One of the world’s most popular fitness chains, Gold’s Gym has filed for Chapter 11 bankruptcy on May 4 in an attempt to financially restructure the company. With other non-essential businesses closing due to the spread of the coronavirus, Gold’s Gym has decided to close about 30 company-owned gyms in the United States.
“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. We have been working with our landlords to ensure that the remaining company-owned gyms reopen stronger than ever coming out of this pandemic,” a statement by the fitness chain read.
The company assured that the filing will not affect its licensing division and locally franchised gyms or end support to global franchises despite the current temporary closure. Gold’s Gym president and CEO Adam Zeitsiff addressed the company’s situation in a video and reassured customers that Gold’s Gym is not shutting down. Zeitsiff says that the company aims to come out on the other side of the Chapter 11 bankruptcy stronger and ready to operate its company-owned gyms, support global franchises, employ teams and serve customers at nearly 700 gyms worldwide by Aug. 1 or sooner.
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