Will the American fitness industry face the tide of bankruptcy?
It is reported that golds gym has previously cooperated with gyms around the world, focusing on three modes of self operation, franchise and franchise. Now, golds gym has more than 600 cooperative gyms in 29 countries and regions, 61 own gyms of global brands and hundreds of thousands of employees, providing services to millions of people in six continents every day. According to the bankruptcy documents, golds gym has $100 million in debt.
This is not the first American gym chain to apply for bankruptcy protection since the outbreak. According to media sources, on June 15, according to a court document, 24 hour fitness, a famous American fitness brand, has applied for bankruptcy protection in Delaware under Chapter 11 of the U.S. bankruptcy law. The companys estimated liabilities are between $1 billion and $10 billion.
Earlier, the company said on its website that it had permanently closed 100 stores, about a quarter of its stores, and one-third of its closed stores were in California. Prior to that, the company had more than 4300 stores and about 22000 employees in 14 states.
Previously, the Wall Street Journal reported that 24 Hour Fitness had laid off workers in several states due to the outbreak.