Tough times for the popular health and wellness store.
The global health crisis continues to rack popular businesses. This time, famed supplement store GNC has filed for Chapter 11 bankruptcy.
GNC’s parent company, GNC Holdings Inc., filed for bankruptcy and also confirmed they would close “at least 800 to 1,200 stores,” approximately a quarter of its North American sites.
The company had been suffering decline in the past year. The decline in sales meant it has been difficult for the company to pay their debt obligations. As such the company has been hurting for some time now. The current global health crisis has now exacerbated the company’s situation.
In a statement, the company said,
“This acceleration will allow GNC to invest in the appropriate areas to evolve for the future, better positioning the company to meet current and future consumer demand around the world.”
GNC has also been seeing competition from online stores that sell supplements, including Amazon. The decline in sales due to competition has hit GNC Holdings Inc. in the pockets helping to lead to them filing for bankruptcy.
In 2019, GNC net sales were $2.1 billion, a dip from the $2.7 billion the company earned four years previous. Like other businesses, the filing of the Chapter 11 will help keep the company in business for the moment. Uncertain times are ahead for the once bustling health and wellness store like most other industries affected at this harrowing time.
Managing Editor at Generation Iron, Jonathan Salmon is a writer, martial arts instructor, and geek culture enthusiast. Check out his YouTube, Instagram, Twitter, Facebook, and Sound Cloud for in-depth MMA analysis.