Popular Gym chain, Gold’s, has filed for bankruptcy protection, as the popular chain struggles to cope with the impact of the Coronavirus pandemic across the globe.
History of the Gold’s Gym
Gold’s Gym was founded by Joe Gold in the year 1965. The first gym opened at Venice Beach in California. In a 1977 docudrama by Arnold Schwarzenegger called the ‘Pumping Iron’, the brand got featured and subsequently, it became a popular brand. Gold’s Gym has a list of celebrity users such as Jodie Foster, Dwayne ‘The Rock’ Johnson, and Tiger Woods.
The company files for bankruptcy protection
Chief executive of the company, Adam Zeitsiff, in a video statement said: “This has been a complete and total disruption of every one of our business norms, so we needed to take quick, decisive actions to enable us to get back on track.” He also assured the users and the employees that the company plans to emerge out from bankruptcy by August.
Gold’s Gym has filed bankruptcy protection under Chapter 11 which means that the company operates as usual while it simultaneously plans on ways to come back into the business.
However, the company said that this move would mean that 30 of the company-owned gyms would head for a closure. Nonetheless, the 700-odd franchise based gym’s across the world could still ply trade after required permissions are given.
Source: BBC News
