Gold's Gym files for bankruptcy, as closures put Dallas-based chain behind on debt payments

[TexasTowelie]

Dallas-based fitness chain Gold’s Gym filed for bankruptcy protection Monday and plans to restructure its debt and close locations, the latest company succumbing to the financial pressures of the COVID-19 downturn.

Gold’s Gym International, which is headquartered in Dallas’ Uptown neighborhood, said it is proceeding with a “pre-negotiated” Chapter 11 restructuring that will allow it to emerge around Aug. 1 while continuing to operate. It closed 32 clubs as part of the bankruptcy, including three in the Dallas area, the company said.

The bankruptcy doesn’t impact the club’s franchise operators, which run about 90% of all Gold’s Gym locations. The gym operator listed as much as $100 million in assets and liabilities, according to court documents. Chapter 11 bankruptcy allows a company to keep operating while it works out a plan to pay lenders and ease its load.

“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.”

Read more: https://www.dallasnews.com/business/2020/05/04/golds-gym-files-for-bankruptcy-as-closures-put-fitness-chain-behind-on-debt-payments/

[Wellstone ruled]

1. Well,you live well beyond your means

and never carry a reserve. You get the end result.

[jimfields33]

2. Story of majority of Americans

Of course you shut down for 3 months none of this is shocking. More closings to come.

[Wellstone ruled]

3. Most Americans do not even

resemble the CEO of Golds. Most Americans at this point during the Reign of the Orange Anus,are having trouble finding the means to get through the day,and one day at a time.

Golds Gym's business Plan obviously did not have any plan for business interruption other than a Fire Insurance or Flood Insurance Policy. When the main Franchiser can not make it,and his Franchisee's are not rolling over,something ain't Kosher as they say.

[jimfields33]

5. Regardless we'll be seeing tons of businesses close for good

You can’t close for 3 months and survive even with reserves.

[calguy]

6. I owned a successful small business for 15 years

I sold it 15 yrs ago. I was just thinking today that if I was still in business I probably wouldn't have survived this. There are very few small businesses that have enough cash reserves to survive being closed for 2 months and remain solvent.

[jimfields33]

7. I'm glad you were able to sell

Most companies have a thin line. Definitely first year businesses are gone. Book stores gone. I think this speeds up mall closings which were on the way out. I heard Macy’s might be done. Jc penny’s cant be far behind. They were barely holding on before this. Hollister and Abercrombie and Fitch were troubled and probably headed for closure. Lots of beauty salons and barbers are gonna close. It’s going to be what downtowns are now in the suburbs after all of this.

[Laelth]

9. Most likely ...

... one third of all restaurants are gone.

That’s a lot of lost jobs.

-Laelth

[Wellstone ruled]

10. Our Rentals were to

Barbers and Salons and in great ethnic neighborhood. If they had to endure what is going on know,all of them would not be able to come back . We spent two years just barely cash flowing,just enough to pay the Taxes and Insurance and License fees. Reaganomics raised holy hell with local Governmental operations and Real Estate taxes were jacked to meet new Property Reassessments as a result. We ate the new Assessments knowing our tenants could only handle a modest Rent increase. But,the property did appreciate as a result just enough to attract a buyer who wanted to just jack up the tenants rent and live on easy street.

We walked away with a ten percent increasing in our original investment plus tax credits for a couple years out. But the Barber and the Lady who ran the Salon,well they bailed,can't blame them,and as for the new owner,lets say a certain Bank ended up with the Property which ended up being condemned by the City and torn down .

[Jamastiene]

4. Wow, that is pretty big.

I never thought I would see them go under.

[Laelth]

8. Just another few thousand people losing their jobs.

But we’re still in business!

What’s the big deal? Right?



-Laelth

[Bayard]

11. Wow

I worked for them many years ago as an instructor in Louisville.

[LeftInTX]

12. I'm a member, but if they go under, I'll join Planet Fitness