Gold’s Gym enters Chapter 11 bankruptcy, looks to emerge by Aug. 1

By Caroline Salls

Pittsburgh, May 4 – GGI Holdings, LLC, which operates Gold’s Gym, filed Chapter 11 bankruptcy on Monday in the U.S. Bankruptcy Court for the Northern District of Texas in an effort to facilitate the financial restructuring of the company, according to a statement made on Gold’s Gym’s website.

GGI said the pre-negotiated filing will enable the company to emerge stronger and ready to grow, and it intends to emerge from Chapter 11 by Aug. 1, if not sooner.

“The global Covid-19 pandemic spurred us to take immediate action, including the difficult but necessary decision to permanently close about 30 company-owned gyms, 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 in the statement.

The company said the bankruptcy filing should not impact its licensing division, is not associated with any of its locally owned franchise gyms and will not prevent GGI from continuing to support its system of nearly 700 gyms around the world.

“While the Covid-19 pandemic certainly impacted our company-owned gym operations, we expect the filing will have no further impact on current operations,” the statement said.

As part of its customary first-day restructuring requests, the company said it will seek court approval to continue paying suppliers, vendors and employees in the ordinary course on a go-forward basis.

No other case details had been filed as of Monday afternoon.

According to court documents, GGI has $50 million to $100 million in both assets and debt.

Dykema Gossett PLLC is representing GGI in its Chapter 11 proceedings.

GGI is a Dallas-based operator of physical fitness facilities. The Chapter 11 case number is 20-31318.

© 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.