COVID-19 Impact: Gold’s Gym files for Chapter 11 bankruptcy amid fitness closures

Gold’s Gym International Inc., unable to keep up with debt payments, sought court protection from its creditors.

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

It is worth noting here that Chapter 11 bankruptcy allows a company to keep operating while it works out a plan to pay lenders.

“We want to be 100 per cent clear that Gold’s Gym is not going out of business. The brand is strong, and we’ll continue to innovate and grow our digital business, our licensing program and our global footprint as we focus on serving our millions of members across the world,” President and CEO Adam Zeitsiff said.

Last month, Gold’s Gym permanently closed about 30 gyms, including locations in Oklahoma, Missouri, Texas, North Carolina, Alabama, Colorado, and South Carolina.

The founder of Gold’s Gym opened his first gym in California in 1965. The company has nearly 700 gyms across the USA and 28 other countries.

Earlier on Monday, J.Crew Group filed for bankruptcy protection. The New York-based chain is reportedly the first high-profile retailer in the US to seek court protection.

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