Gold's Gym files bankruptcy, Philippine branches unaffected
MANILA, Philippines — International gym chain Gold's Gym, otherwise known as GGI Holdings, LLC and its affiliates, has filed for Chapter 11 (reorganization) bankruptcy due to the novel coronavirus 2019 (COVID-19) pandemic but assured stakeholders that it's "absolutely not going anywhere."
“The global COVID-19 pandemic spurred us to take immediate action, including the difficult but necessary decision to permanently close about 30 company-owned gyms, to maintain the strength and growth of the potential of the brand as well as ensure the continued viability of the company for decades to come. We have been working with our landlords to ensure that the remaining company-owned gyms reopen stronger than ever coming out of this pandemic,” the company said in an official statement.
“To be clear, the filing should not impact our licensing division, it is not associated with any of our locally-owned franchise gyms, nor will it prevent us from continuing to support our system of nearly 700 gyms around the world.”
Meanwhile, Gold's Gym Philippines on Tuesday said that its local clubs will not be affected by its Western counterpart’s decision.
"Gold's Gym Philippines is not in any way affected by the decision of Gold's Gym US, to close at least 30 of its company-owned clubs in the United States. The financial restructuring of the operating arm of Gold's Gym in the US is unrelated to its franchise division, as well as other franchised operations in the US, Philippines, and the rest of the world,” read their statement posted today.
Gold's Gym has 26 locations in the country that have been temporarily close due to the lockdown.
These are in Quezon City, Muntinlupa City, Mandaluyong City, Taguig City, Makati City, Pasig City, Marikina, Manila, Cagayan de Oro City, Pampanga and Cebu.
The company has since provided more information for members, employees, franchisees, licensees, vendors and other stakeholders on its website.
