Many giant companies in the world are on the verge of fading away due to losses incurred in lockdown time of COVID scare. In the US, we have earlier heard of AMC cinemas that could survive only up to the end of June and now another US biggie Gold’s Gym has filed bankruptcy.
Gold’s Gym has filed for bankruptcy protection under chapter 11 of country’s bankruptcy code. The company issued a statement that they had to do this in an effort to restructure the company financially. Gyms along with movie theaters and other non-essential businesses had to close in the lockdown time of coronavirus and that has led them to huge losses.
At present, the Gold’s Gym had to close 30 of its outlets permanently but the bankruptcy protection filing is not believed to impact their licensing division. Also, the current operations will not be impacted by the filing, though the coronavirus pandemic and lockdown did impact the gym operations.
There are more than 700 gyms owned by Gold’s gym chain and the company also manufactures gym equipment.