Gold’s Gym locations have been closed since mid-March as coronavirus social distancing guidelines kept people away.
With the more than 400 gyms in the U.S. sitting empty, the company took a hard financial hit — and now they’ve filed for Chapter 11 bankruptcy.
Gyms are closing, but chances are, yours won’t be. Here’s what’s happening:
Gold’s Gym isn’t going out of business.
The company’s CEO said the decision to close 30 company-owned gyms and file for bankruptcy was made to help restructure Gold’s Gym for surviving in a post-coronavirus world.
Chapter 11 bankruptcy allows Gold’s Gym to get some relief from their mounting debt, allowing them to reorganize their finances while paying creditors over time.
At least 30 company-owned gyms will close permanently.
On May 4, Gold’s Gym released a statement officially announcing their Chapter 11 bankruptcy filing and the permanent closure of “about 30 company-owned locations,” mainly in the Alabama, Colorado Springs, and St. Louis, Missouri markets.
Business Insider published a list of 32 locations set to close, compiled from local news reports and the gyms’ Facebook pages.
Those closures reportedly will be in:
- Texas (11)
- Missouri (10)
- Alabama (3)
- Colorado (3)
- Oklahoma (3)
- North Carolina (1)
- South Carolina (1)
Your Gold’s Gym probably won’t be affected by the bankruptcy filing.
The vast majority of Gold’s Gym’s 700 locations are franchises, which means they’re independently owned and operated.
While each of those locations has their own choices to make with regards to their own small business finances, the Gold’s CEO said the franchise gyms won’t be affected by the bankruptcy filing, and will reopen when they’re able.
Contact your local gym to find out if and when they’re planning to reopen.
In the meantime, Gold’s Gym is offering free online workouts.
The Gold’s Gym premium app, Gold’s Amp, is being offered for free until May 31, 2020. Visit Gold’s Gym online, and enter promo code FIT60. The app offers over 600 audio and video workouts and hundreds of DJ mixes to keep you moving in the gym, outside, or at home.