GNC Holdings sets bid procedures for proposed $760 million asset sale

By Caroline Salls

Pittsburgh, July 2 – GNC Holdings, Inc. requested court approval of the bidding procedures for the proposed sale of substantially all of its assets, according to a motion filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, GNC filed bankruptcy with a restructuring support agreement that allows it to pursue a dual-track strategy designed to maximize the value of its estates.

The company, a significant majority of its supporting secured lenders and Harbin Pharmaceutical Group Holding Co., Ltd., an affiliate of GNC’s largest shareholder, reached an agreement in principle for the sale of GNC’s business.

The term sheet documenting that agreement outlines a $760 million purchase price for the sale’s transaction, which will be executed through a court-supervised auction process.

The finalized stalking horse agreement is expected to be filed by July 7 but must be filed no later than July 15, the motion said.

Under the proposed procedures, competing bids are due by 4 p.m. ET on Aug. 28 and must at least equal the stalking horse bid, plus $25.8 million in bid protections to be paid if the stalking horse is not ultimately the winning bidder as well as a $5 million minimum overbid amount.

An auction will be held on Sept. 1, if necessary. Bids at auction must be made in minimum increments of $5 million.

GNC is requesting a Sept. 4 sale hearing.

A hearing on approval of the bid procedures is scheduled for July 22.

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.

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