Gold’s Gym files for Chapter 11 bankruptcy due to coronavirus pandemic

National

(AP Photo/The Star-News, Mike Spencer)

TAMPA, Fla. (WFLA) – Gold’s Gym announced it has filed for Chapter 11 bankruptcy in an effort to financially restructure due to the coronavirus pandemic.

The company announced it hopes to “be on the other side of Chapter 11 by August 1, 2020, if not sooner.”

In a statement released by Gold’s Gym, 30 company-owned gyms were also permanently closed.

“The global COVID-19 pandemic spurred us to take immediate action, including the difficult but necessary decision to permanently close about 30 company-owned gyms, to maintain the strength and growth of the potential of the brand as well as ensure the continued viability of the company for decades to come. We have been working with our landlords to ensure that the remaining company-owned gyms reopen stronger than ever coming out of this pandemic.”

Throughout the restructuring process, Gold’s Gym said it will continue to do the following:

  • Re-open its temporarily closed gyms in accordance with state, local and federal guidelines
  • Focus on the health and safety of its members and team members around the world
  • Provide team members wages, healthcare coverage, vacation and other benefits
  • Provide the highest level of support and guidance to our global franchise network
  • Support its numerous brand licensees around the world
  • Pay suppliers and vendors in the ordinary course on a go-forward basis
  • Focus on innovation, including finding even more ways to serve its customers inside and outside the walls of our gyms

The company said filing for Chapter 11 will have no further impact on its current operations.

Below is a video from Gold’s Gym President and CEO Adam Zeitsiff.

Gold’s Gym said it will continue to freeze its membership dues until local gyms are able to reopen.

The company has not given a specific date on the reopening of its gyms might be but said it will follow local, state and federal guidelines when the time comes.

For more information, click here.

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