Gold’s Gym filed for Chapter 11 bankruptcy protection late Monday. The move comes as the fitness chain deals with outlet closures nationwide due to the coronavirus pandemic.
The company filed for bankruptcy in Dallas, listing as much as $100 million in assets and liabilities. Chapter 11 allows a company to keep operating while it works out a plan to pay lenders.
Gold’s, which franchises most of its locations, recently said it would permanently close 30 company-owned locations. Gold’s has nearly 700 fitness centers worldwide.
The fitness giant says the bankruptcy will have “no further impact on current operations.”
Franchisees Unimpacted
Gold’s indicated the bankruptcy would likely not impact its franchisees. “To be clear, the filing should not impact our licensing division, it is not associated with any of our locally owned franchise gyms, nor will it prevent us from continuing to support our system of nearly 700 gyms around the world,” the company said in a statement.
The company plans to reopen its remaining locations when authorities say it’s safe to do so.
“Our focus is and always will be on our members around the world, and we look forward to welcoming them back as soon as it is safe for our members, team members and communities,” the more than 50-year-old company said.
The Plan
Gold’s will try to sell itself under terms proposed by TRT Gym Asset Holdings LLC, according to the court documents. TRT Holdings Inc. is in discussions with the company over the terms to get it through the restructuring. TRT Holdings Inc. is Gold’s majority shareholder.
The company aims to restructure and emerge from bankruptcy by August of this year or sooner. Gold’s will try to reopen gyms closed because of Covid-19 during the bankruptcy.
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