Gold’s Gym filed for Chapter 11 bankruptcy protection on Monday, Business Insider reported.
The Dallas-based fitness chain referred to the strain brought on by the coronavirus pandemic and hopes to reemerge from bankruptcy by Aug. 1, according to Business Insider.
"We want to be 100 percent clear that Gold's Gym is not going out of business," President and CEO Adam Zeitsiff said in a news release. "The brand is strong, and we'll continue to innovate and grow our digital business, our licensing program and our global footprint as we focus on serving our millions of members across the world."
The company said that the bankruptcy filing would affect only company-owned locations, which represent about 10 percent of its roughly 700 locations around the world, Business Insider reported.
The gym operator filed for bankruptcy in Dallas, and is listing as much as $100 million in assets and liabilities, Bloomberg reported citing court papers. Through the bankruptcy process, the company will close about 30 company-owned gyms, Bloomberg reported.
U.S. Bankruptcy Judge Harlin DeWayne Hale has been assigned to the case. Gold’s lead bankruptcy lawyers are Dallas partner Aaron Kaufman and San Antonio associate Danielle Rushing, of Dykema Gossett, according to The Texas Lawbook.
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