Gold’s Gym has filed for Chapter 11 Bankruptcy.
The company is stressing that they are not planning on shutting down but they did announce the permanent closure of 30 locations last month. The company hopes to be able to restructure by August 1st so it can get back to business.
As I wrote about the XFL filing for Chapter 11, this isn’t the end of the road for Gold’s Gym. Chapter 11 is a tool available to companies who need some relief on their debt. While shutting down could be a possibility, the likelihood of that is low.
“Gold’s Gym has been the world’s trusted fitness authority for going on 55 years, and we are absolutely not going anywhere,” CEO Adam Zeitsiff said in a video message announcing the Monday bankruptcy filing.
One has to wonder how long it will take for the fitness business to rebound after states begin to loosen “stay-at-home” restrictions.