Gold’s Gym International filed for bankruptcy protections Monday, The Dallas Morning News reported. Headquartered in Dallas, Gold’s closed 32 company-owned clubs because of the financial fallout of COVID-19, the disease caused by the novel coronavirus. Three gym locations in North Texas will permanently be closed.
The company has more than 700 locations worldwide, and its franchises — which make up about 90% of Gold’s Gym locations — won’t be affected by the bankruptcy.
The company is filing for Chapter 11 bankruptcy, which allows it to restructure its debts and assets while continuing to operate. Gold’s Gym plans to emerge from bankruptcy around Aug. 1.
“We are 1,000% not going out of business,” said Gold’s Gym CEO Adam Zeitsiff. “This is a result of the COVID-19 global pandemic.”
Gov. Greg Abbott has held off on reopening gyms and other select businesses like hair salons, barber shops and bars. On April 27, when he unveiled his plan to slowly reopen the economy, Abbott said he hopes those businesses can open “on or no later than mid-May.” — Clare Proctor