Gold's Gym files for bankruptcy due to coronavirus closures

Henrietta Strickland
May 5, 2020

Gold's Gym International Inc. sought court protection from its creditors, unable to keep up with debt payments after the prolonged shutdown caused by the coronavirus outbreak.

One of the most famous bodybuilding gyms, Gold's Gym, in the world has officially filed for Chapter 11 bankruptcy. "The company will be seeking court approval to continue paying suppliers, vendors, and employees in the ordinary course on a go-forward basis", they explained.

CNN reports J. Crew filed for bankruptcy on Monday, and that JCPenney and Neiman Marcus might be forced to follow suit. A number of gym chains were struggling with onerous debt even before the virus shuttered the global economy.

The company said the move would mean the permanent closure of 30 company-owned gyms.

WATCH: For an inside look at Gold's Gym, check out Rich Gaspsari's training tour at the landmark Venice Beach location in Hunt For Hardcore. It now operates more than 700 gyms around the world, according to its website.

Gold's Gym has eight locations in New Jersey, and all of them are locally-owned, meaning they are not affected by the corporate decision to file for bankruptcy. Its 700 gyms worldwide will stay open as it looks to restructure during the coronavirus pandemic that has virtually shutdown the entire USA economy.

Through its pre-negotiated plan, the company aims to restructure and emerge from bankruptcy by August of this year or sooner.

As our global community continues to navigate these hard and uncertain times, we want to provide consistent updates regarding the impact of COVID-19 on our gyms.

Gold's Gym can also boast of a long list of other celebrity users including Jodie Foster, Dwayne "The Rock" Johnson and Tiger Woods.

Other reports by Click Lancashire

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