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Gold’s Gym filed for bankruptcy protection in US

Gold’s Gym has approximately 120 gym businesses that are spread around India Metros, and it also has other gyms that are spread around the world. Recently, this business gave an announcement that they would shut down 30 of their gyms in different locations, and this was to be effective immediately. This was after Gold’s Gym filed for bankruptcy and requested for protection in the United States. The enterprise stated that the coronavirus had taken a toll on their business, and with most people being under lockdown in India and other countries, the gyms were on the verge of collapse.

The fall of the famous Gold’s Gym business after being operational for 50 years

Gold’s Gym stated its operations fifty years ago, with its first gym locations being in California and Venice. It has since expanded and grown its operations to reach a total of 700 gyms across the globe. Even though gyms that are in some countries are mainly franchises, they still operated under the Gold’s name and brand. This gym business has been very successful over the years and has gained a lot of popularity among clients. Coronavirus has, however, made these gyms remain closed as people opt to stay indoors in a bid to avoid contracting the virus. Due to this impact on their business, Gold’s Gym filed for a petition under Chapter 11 of the constitution of the United States to be given relief from the debt obligations. Aside from filing for bankruptcy, Gold’s Gym would also close a total of 30 gyms to reduce their operational costs. This would be done after an assessment of the viability of some of their gym locations. However, the company stated that closure would only be effected on those gyms that are owned by the company and not those gyms that are franchises.

In India, there are around 120 gyms, and most of these are located in metros. Gold’s Gym started their gyms in India in 2002 in the city of Mumbai. Gold’s gyms in India are mostly attended by the high and mighty in the society, as the costs of attending the gym are very high. To be able to attend the gym, one has to get an annual membership package. This means that with the gyms being declared bankrupt, and then the people who have gotten these annual memberships will get affected.

Gold’s Gym, however, stated that this would not be the end of their operations. The company stated that by 1st August 2020, they would make plans to lift their bankruptcy petition so that they continue with business as usual. The enterprise also announced that by filing bankruptcy at the time, it would help them to come out stronger than ever and with the potential to grow. They also stated that clients should not lose confidence in them because of the same way that their gyms have been operational for fifty years; they would remain functional for years to come. As a means of maintaining customer support, they would be in continuous contact with their members and keep them updated on their operations.

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