INFORMATION ABOUT THE GOLD’S GYM
CHAPTER 11 RESTRUCTURING

 

On May 4, 2020, GGI Holdings, LLC and its affiliates (“Gold’s Gym”) filed voluntary petitions for relief under Chapter 11 in an effort to facilitate the financial restructuring of the company. This pre-negotiated filing will enable us to emerge stronger and ready to grow, and it is our intent to be on the other side of Chapter 11 by August 1, 2020, if not sooner.


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.


Our focus is and always will be on our members around the world, and we look forward to welcoming them back as soon as it is safe for our members, team members and communities. Gold’s Gym has been the world’s trusted fitness authority for more than 50 years, and we’re absolutely not going anywhere.


Throughout this process, Gold’s Gym is continuing to:

  • Re-open our temporarily closed gyms in accordance with state, local and federal guidelines;
  • Focus on the health and safety of our members and team members around the world;
  • Provide team members wages, healthcare coverage, vacation and other benefits;
  • Provide the highest level of support and guidance to our global franchise network;
  • Support our numerous brand licensees around the world;
  • Pay suppliers and vendors in the ordinary course on a go-forward basis;
  • Focus on innovation, including finding even more ways to serve you inside and outside the walls of our gyms.

Click here for our full Company Statement.

A VIDEO MESSAGE FROM GOLD’S GYM PRESIDENT & CEO ADAM ZEITSIFF


Video Transcripts
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ADDITIONAL INFORMATION AND FREQUENTLY ASKED QUESTIONS

GENERAL INFORMATION


Q: Why did Gold’s Gym decide to file Chapter 11? A: The COVID-19 global pandemic has affected Gold’s Gym deeply and in many ways. 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. This pre-negotiated filing will enable us to emerge stronger and ready to grow, and it is our intent to be on the other side of Chapter 11 by August 1, if not sooner. Gold’s Gym has been the world’s trusted fitness authority for more than 50 years, and we’re absolutely not going anywhere.


Q: Is Gold’s Gym going out of business? A: We want to be 100 percent clear that Gold’s Gym is not going out of business. Gold’s Gym will continue to own and operate gyms across the United States, and we will continue to support our licensing division and franchisee network of nearly 700 gyms all over the world. Franchisee-owned Gold’s Gym locations, which make up the bulk of our global footprint, are not part of this filing and should not be affected by or tied-to this in any way.


Q: Was Gold’s Gym planning this action before the COVID-19 pandemic? A: 2019 was our strongest year of worldwide growth in company history. No single factor has caused more harm to our business than the current COVID-19 global pandemic and the temporary closures required to protect the safety of our members, team members and communities. Filing for Chapter 11 was the best option to maintain the strength and growth potential of the brand as well as ensure the continued viability of the company for decades to come.


Q: What does this mean for the Gold’s Gym brand going forward? A: Gold’s Gym is the most iconic brand in fitness – we defined the industry almost 55 years ago and we will continue to grow and innovate long into the future, including finding even more ways to serve you as we move through this restructure at our company and navigate the changing norms in the world at-large. It is our intent to be on the other side of Chapter 11 by August 1, if not sooner, and emerge stronger so we can continue operating our company-owned gyms, supporting our global franchisees, employing our teams and – most importantly – serving our millions of members at nearly 700 gyms worldwide.


MEMBERS


Q: Is my Gold’s Gym permanently closing? A: 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 potential of the brand as well as ensure the continued viability of the company for decades to come. This decision affects only company-owned gyms, mainly in our St. Louis, Alabama and Colorado Springs markets, and does not have an impact on any of our franchise-owned gyms. We are working around the clock to reopen our remaining company-owned locations stronger than ever coming out of this pandemic.


Q: When will my Gold’s Gym reopen? A: Our gyms are following local and state guidelines for operations as well as all direction from public health officials. We will reopen as soon as it is deemed safe for our members, team members and communities. Please look for communication regarding re-opening dates to be sent by your individual gym once those updates are available. In the meantime, we are offering free at-home fitness options so you can continue working out while your gym is closed – visit www.goldsgym.com/anywhere for more information. This filing should not affect the re-opening plans of any Gold’s Gym location.


Q: What does this mean for my membership? A: This filing does not affect your membership agreement. Our company-owned gyms will continue to freeze membership dues at no cost until our local gyms are able to reopen. Franchisee-owned Gold’s Gym locations, which make up the bulk of our global footprint, are not part of this filing and should not be affected by or tied-to this in any way.

If you were a member at one of our permanently closed company-owned gym locations, we will email you with updates on what this means for your membership, pre-paid dues and services. This includes seamlessly transferring your membership to another nearby Gold’s Gym location where possible or working to find ways to continue your fitness journey in situations where a physical Gold’s Gym location will no longer be available in your market.


TEAM MEMBERS


Q: How will this affect my employment with Gold’s Gym? A: We will continue to provide wages, healthcare coverage, vacation and other benefits to team members in our company-owned gyms and global support center. Our goal is to bring back available furloughed employees as company-owned gyms re-open. Team members at our franchisee-owned Gold’s Gym locations, which make up the bulk of our global footprint, should not be affected by this filing in any way.


Q: What does timing look like for me to get back to work? A: Our goal is to bring back available furloughed employees as company-owned gyms reopen. Gyms are included in Phase One of the federal economic reopening plan, and our team has been working non-stop to make re-openings successful on a state-by-state basis. At the grassroots level for each gym, that exact timing is subject to the decisions of each state and local government where we operate. When state and local officials approve of gyms reopening, we will be ready.


FRANCHISEES


Q: What does this mean for me as a Gold’s Gym franchisee? A: The restructuring should not impact our domestic or international franchisees in any capacity. We expect no changes to the level of operational and marketing support that we will continue to provide our franchise organization across the United States and around the world. We are committed to being successful and stronger together with you on the road ahead, for the next 55 years and beyond.


Q: What does this mean for the future of Gold’s Gym’s franchising efforts? A: Gold’s Gym intends to continue adding new franchise locations around the world with a strong pipeline of new franchise candidates, with the goal of becoming the best global franchisor in the industry.


LICENSEES


Q: What does this mean for me as a Gold’s Gym licensee? A: This restructuring should not impact our licensing division in any capacity or affect the commitment we have to you and our partnership. We expect strong licensing agreements that extend the Gold’s Gym brand around the world to continue.


Q: What does this mean for the future of Gold’s Gym’s licensing efforts? A: Because of the strength of the Gold’s Gym name as the world’s trusted fitness authority in addition to our global brand affinity and recognition, our licensing business remains strong globally and we’ll look to grow it further in the future.


VENDORS


Q: What does this mean for me as a Gold’s Gym vendor? Will I continue to receive payment for the services I provide to Gold’s Gym? A: As part of the company’s typical “first-day” restructuring requests, the company will be seeking court approval to continue paying suppliers and vendors in the ordinary course on a go-forward basis. Please contact vendors@goldsgym.com for more details on your vendor status among secured and unsecured creditors and payment procedures as a result of this restructuring.

The franchisee-owned gyms, which make up the bulk of the Gold’s Gym global footprint, are not part of this filing in any capacity and should not be affected by or tied-to this in any way.

We appreciate your continued partnership with our brand and thank you in advance for your patience as we restructure our company and continue to navigate through these unprecedented times.


MORE INFORMATION


Q: How can I locate and follow the Court proceedings? A: Information on the Court proceedings can be found at http://www.bmcgroup.com/ggi.


MEDIA


U.S. Inquiries U.S. media seeking more information should contact our 24-hour media relations hotline at 817-329-3257.


International Inquiries International media seeking more information can reach Gold’s Gym’s international media relations contact, Edel McCaffrey, at edel.mccaffrey@outlook.com or 00 44 (0) 7770 282 245.