A lot of businesses are feeling the pressure during the lockdown. Especially places that are meant for social interaction. Gyms depend on people coming into their facilities in order to continue operating. Gold’s Gym is one of the world’s largest gym operators ranking number three in the top ten gym chains in the United States.
However, they just couldn’t make it through the nationwide lockdown and are filing for bankruptcy as the pandemic has wreaked havoc on the fitness business.
With locations temporarily closed all across the globe due to the coronavirus outbreak, about 30 corporate-owned gyms have permanently closed. Representatives of the gym say they’re being forced to seek relief from creditors.
The company hopes to come out of Chapter 11 bankruptcy by the beginning of August and says it will continue to pay vendors and suppliers while under court protection.
According to the bankruptcy filing, the company, which is based in Dallas, has a debt of about $50 million to $100 million with assets in the same range.
Gold’s Gym is mostly franchised and says” the bankruptcy will have no further impact on current operations while under court supervision.”
Despite all of these closures, the gym still has nearly 700 locations with some in other countries.
The gym says it has been forced to furlough the majority of its staff, which is about 4,600 people.
The filing shows just how hard the fitness industry has been hit by the shelter in place orders. There are reports that 24-hour Fitness is also considering filing bankruptcy.
