Global fitness chain Gold’s Gym has filed for bankruptcy as it finds itself in the middle of a coronavirus pandemic amid lockdowns in several countries.
Gold’s Gym filed voluntary petitions for relief under Chapter 11 of bankruptcy protection in the US, in an effort to facilitate the financial restructuring of the company.
“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,” it said in a statement on Monday.
“We have been working with our landlords to ensure that the remaining company-owned gyms reopen stronger than ever coming out of this pandemic,” the company added.
Gold’s Gym was founded in Venice, California, by former bodybuilder Joe Gold and “has been the world’s trusted fitness authority for more than 50 years,” according to its website.
Today, it has over 700 gyms worldwide, including over 120 in India.
The company said the filing will not have a further impact on its current operations and it plans to emerge from bankruptcy by August.
“The company will be seeking court approval to continue paying the suppliers, vendors and employees in the ordinary course on a go-forward basis. No single factor has caused more harm to our business than the current Covid-19 global pandemic,” it added.
As part of the company’s typical “first-day” restructuring requests, the company will be seeking court approval to continue paying suppliers, vendors and employees in the ordinary course on a go-forward basis.
The India chapter of Gold’s Gym started in 2002 when its first branch was set up in Mumbai.
“In the next few years, this number grew and today, Gold’s Gym has 120 branches in India with another five under construction and ready to start in this year,” read the information on its India website.
The Gold’s Gym caters to famous celebrities, including film and television personalities, sportspersons and corporate honchos.