Gold’s Gym International Inc has officially filed for bankruptcy – but promise that they are not going out of business.
One of the most famous bodybuilding gyms, Gold’s Gym, in the world has officially filed for Chapter 11 bankruptcy. As reported by Bloomberg, Gold’s Gym International Inc. filed for bankruptcy in Dallas, listing up to $100 million in assets and liabilities according to official papers. The chapter 11 bankruptcy will allow the company to keep operating while it determines a plan to pay landers.
Gold’s Gym stated that the reason for the bankruptcy was due to the pandemic – which has forced shutdown of many local business and has hit the fitness world hard with a near worldwide closure of gyms.
Gold’s Gym has released an official video statement which can be viewed here:
https://www.instagram.com/p/B_xNUo5FxWN/
“First off, I want to reassure everyone who is watching this video around the world that we are not going out of business,” States president and CEO Adam Zeitsiff. “Gold’s Gym has been the world’s trusted fitness authority for over 55 years and we are absolutely not going anywhere.”
Gold’s Gym is well known in the business world as The Mecca Of Bodybuilding. It traces it’s roots back to 1965 in Venice, California and has been the home to many legends included Sergio Oliva and Arnold Schwarzenegger.
The bankruptcy announcement comes after a previous statement revealing that 30 Gold’s Gym locations around the world had been permanently closed. Though this was a heavy hit for the company, Zeitsiff maintains that they are doing everything in their power to maintain the remaining company owned locations.
It’s also made clear that the franchise locations are not affected by the bankruptcy filing – though each individual location is certainly facing struggles as most continue to be shut down during the social distancing guidelines across the nation.
The official statement ends by claiming that the pre-negotion filing allows them to plan on being able to re-open “stronger and and ready to grow” by August 1, 2020. For more information on Gold’s Gym plan for restructuring, you can head over to their official Q&A page right here.
