GNC Holdings receives interim approval to conduct store-closing sales

By Caroline Salls

Pittsburgh, June 26 – GNC Holdings, Inc. received interim court approval to conduct store-closing sales in line with a consultant agreement with a joint venture comprised of Tiger Capital Group, LLC and Great American Group, LLC, according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

The final hearing is scheduled for July 22.

As previously reported, GNC has been executing a store portfolio optimization strategy over the past year to close underperforming stores, while continuing to invest in omnichannel and brand strategies to better meet consumer demand.

As a result, GNC expects to accelerate the closure of at least 800 to 1,200 stores.

The Tiger Capital/Great American Group joint venture will serve as the store-closing consultant for U.S. locations, and a joint venture comprised of Tiger Asset Solutions Canada, ULC and GA Retail Canada ULC will serve as consultant for Canadian locations.

The consultants will receive an incentive fee based on the gross recovery percentage of merchandise sold.

The interim order also allows GNC to make $342,000 in payments under a store-closing bonus plan.

GNC Holdings is a Pittsburgh-based health, wellness and performance retailer. The company filed bankruptcy on June 23 under Chapter 11 case number 20-11662.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.