Gold’s Gym International has officially announced that they have filed for bankruptcy protection under Chapter 11 of the United State’s bankruptcy code. Chapter 11 bankruptcy allows a company to continue to operate as it works out a plan to stay in business. It is unfortunate that yet another company had to take such desperate measure due to economic crisis caused by COVID-19 pandemic.
The company stated that the current scenario has forced them to shut down 30 of their outlets. Gold’s Gym has over 700 franchise around the globe. How this recent turn of events effect them is something we need to wait and watch. Overall, fitness centers across the globe have been suffering as people do not prefer to step out for fitness routine. Indian government has not yet allowed operations of fitness centers and sports centers as a precautionary action to prevent spread of COVID-19. Although the country has been able to contain the pandemic to an extend, we haven’t had much luck with the economic situation.
The original Gold’s Gym was opened by Joe Gold in Venice, California in 1965. The company was an instant hit. With over 3 million members worldwide they are one of the top fitness gyms in the world. It was in 2002 that Mr. J. K. Valecha took the initiative to bring Gold’s Gym to India with the mission – ‘When Indians think of fitness, they think of Gold’s Gym’. Gold’s Gym India was set to create a new trend through their High Intensity Interval Training (HIIT) work outs in 2020. They currently run over 100 outlets across the country and more under construction. We are yet to see how this move of Gold’s Gym to facilitate financial reconstruction of the company will effect their Indian master franchise.
Gold’s Gym India’s CEO, Mr. Nikhil Kakkar in his official statement has reemphasized that the brand will continue to grow in the country and they will emerge from the pandemic stronger than before.