Gold’s Gym, one of the leading chain of gyms in the country has filed for bankruptcy protection under Chapter 11 of the country’s bankruptcy code.
The company said in a statement on May 4 that the move has been taken in an effort to facilitate the financial restructuring of the company.
Businesses across the world have been hit by the lockdown to contain the spread of COVID-19, with gyms a common example of enterprises that have remained shut during this period.
Gold’s Gym has said that the current scenario has forced it to permanently shut down 30 of its outlets in order to ensure viability.
However, it said the filing ‘should not impact our licensing division’ as it is not associated with any of its locally-owned franchise gyms.
“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 company said in its statement.
A pretty popular name amid bodybuilders, the Gold’s Gym chain operates around 700 gyms across the world.