Gold’s Gym has filed for Chapter 11 bankruptcy as the pandemic forces the gym to keep its doors closed.
On Monday, GGI Holdings, LLC and its affiliates, namely Gold’s Gym, filed voluntary pettions for relief under Chapter 11 to restructure the company.
The company says this filing “will enable us to emerge stronger and ready to grow, and it is our intent to be on the other side of Chapter 11 by August 1, 2020, if not sooner.”
Gold’s Gym does not expect this filing to impact any locally-owned gyms and the company will continue to support its 700 gyms around the world.
“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 company said. “Gold’s Gym has been the world’s trusted fitness authority for more than 50 years, and we’re absolutely not going anywhere.”
The news comes just weeks after Gold’s Gym announced plans to permanently close about 30 locations, including one in Winston-Salem, due to the financial impacts of the coronavirus, according to a notice sent to members.
“As our global community continues to navigate these difficult and uncertain times, we want to provide consistent updates regarding the impact of COVID-19 on our gyms,” Gold’s Gym said. “Today this includes sharing the news that the COVID-19-related closures have caused us to reassess the viability of some company-owned Gold’s Gym locations and make the difficult decision to permanently close about 30 gyms across the United States.”
The closures will only impact company-owned gyms, not franchise-owned locations.
“Our focus is and always will be on our members, and we will be in touch with updates on what this means for your membership soon,” the gym said. “This includes seamlessly transferring your membership to another nearby Gold’s Gym location where possible, or working to find ways to help you continue your fitness journey in situations where a physical Gold’s Gym location will no longer be available in your market.”