On Wednesday, the Indian unit of Gold’s Gym International Inc. issued a statement over the news of bankruptcy protection filing in an attempt to allay fears of its franchise partners.
It is worth noting that the gym operator filed for bankruptcy in Dallas, listing as much as $100 million in assets and liabilities.
“To be clear, our principals from Golds Gym International informed us about this restructuring. They strongly emphasized that Gold’s Gym is not going out of business,” Gold’s Gym India’s COO Nikhil Kakkar, said in a statement.
“They categorically said that it absolutely doesn’t have an impact on the licensing division of franchise partners, nor will it prevent them from continuing to support our system of nearly 700 gyms worldwide including countries like India,” Chief Operating Officer (COO) added.
Kakkar clarified that the step was taken to facilitate the financial restructuring of the company in the US. Moreover, he also underlined the significant contribution of franchise partners in the growth story of the brand and reassured them to “emerge from this pandemic stronger than before.”
A pretty popular name among bodybuilders, Gold’s Gym India has over 150 centres in more than 90 cities in the country.