Gold’s Gym has filed for Chapter 11 bankruptcy protection, the company announced Monday. Its 700 gyms worldwide will stay open as it looks to restructure during the coronavirus pandemic that has virtually shutdown the entire U.S. economy.
Last month, Gold’s Gym permanently closed about 30 company-owned gyms during the COVID-19 outbreak. The company at the time said the decision was made “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.”
The company said the filing Monday will not have further impact on its current operations and plans to emerge from bankruptcy by August. “The company will be seeking court approval to continue paying suppliers, vendors, and employees in the ordinary course on a go-forward basis,” they explained. “No single factor has caused more harm to our business than the current COVID-19 global pandemic.”
Gold’s Gym was founded in Venice, California, by former bodybuilder Joe Gold and “has been the world’s trusted fitness authority for more than 50 years,” according to its website.
Over the weekend, the company’s CEO addressed the company’s financial situation in a video posted on YouTube.
Also Monday, apparel company J. Crew filed for Chapter 11 bankruptcy because of the economic slowdown caused by the coronavirus. It, too, plans to reopen as soon as stay-at-home orders and other health restrictions related to COVID-19 are lifted.