GGI Holdings, LLC and its affiliates Gold’s Gym filed for relief under Chapter 11 in an effort to facilitate the financial restructuring of the company.
CEO Adam Zeitsiff said the filing will ensure the company’s viability for decades.
The chain listed assets and liabilities of between $50 million and $100 million, according to its Chapter 11 petition filed in the U.S. Bankruptcy Court in Dallas. The company has furloughed most of its 4,600 employees in response to the crisis, per court papers.
“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,” Zeitsiff 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 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.
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.
While the COVID-19 pandemic certainly impacted our company-owned gym operations, we expect the filing will have no further impact on current operations.
As part of the company’s typical “first-day” restructuring requests, the company will be seeking court approval to continue paying suppliers, vendors, and employees in the ordinary course on a go-forward basis.