Gold’s Gym International Inc. filed for Chapter 11 bankruptcy protection on Tuesday (May 5), citing financial disruptions created by the COVID-19 pandemic, per a company statement.
The Wall Street Journal reported that the Dallas-based chain will permanently shutter 32 corporate-owned gyms and restructure its balance sheet. The company said they will continue to pay vendors and plans to emerge from bankruptcy by August 1 or sooner.
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."
Still, it’s unclear whether gym enthusiasts will be willing to return. A PYMNTS survey of more than 12,000 consumers across all demographics and income groups found that just 28 percent of respondents were very or extremely interested in doing so, with 51 percent slightly or not at all interested.
In mid-March, Gold’s temporarily closed its company-owned Gold's Gym locations in the U.S., including Texas, Oklahoma, St. Louis and Carolina gyms, through March 31. The closings were extended because they are not considered an essential business.
In April, Gold's announced on its Facebook page that it was permanently closing 30 gyms, mainly in the St. Louis, Alabama and Colorado Springs markets. Along with the announcement, Zeitsiff said no other locations would be shuttered.