Gold's Gym files for bankruptcy due to coronavirus pandemic

Henrietta Strickland
May 5, 2020

Well-known gym chain Gold's Gym has filed for bankruptcy, blaming the coronavirus pandemic for its financial stress.

More than 700 gyms operate around the world under the Gold's brand, most of which are franchises.

The bankruptcy announcement comes after a previous statement revealing that 30 Gold's Gym locations around the world had been permanently closed.

He also moved to reassure customers and employees that the company planned to emerge from bankruptcy protection by August, if not sooner, adding "we're absolutely not going anywhere".

"While the COVID-19 pandemic certainly impacted our company-owned gym operations, we expect the filing will have no further impact on current operations", the company said.

Gold's Gym, which is mostly franchised, says "the bankruptcy will have no further impact on current operations while under court supervision". and despite dozens of closures, Gold's Gym still has almost 700 locations. The closures, announced in April, will mainly affect locations in St. Louis, Alabama and Colorado Springs, Colorado.

The gym operator filed for bankruptcy in Dallas, listing as much as US$100 million in assets and liabilities, according to court papers.

People walk near to the entrance of Gold's Gym, one of the businesses that reopened after a shutdown to prevent the spread of the coronavirus disease (COVID-19) in Augusta, Georgia.

The chain is offering members free at-home fitness options while its gyms are closed.

The announcement came just hours after fashion chain J. Crew became the first major USA retailer to file for bankruptcy protection because of the coronavirus crisis. TRT Holdings Inc., the majority shareholder of Gold's Gym, is in discussions with the company over the terms of a debtor-in-possession and exit loan to get it through the restructuring.

Other reports by Click Lancashire

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