Business & Tech
Gold's Gym Files Chapter 11 Bankruptcy
Fitness chain Gold's Gym filed for Chapter 11 bankruptcy protection this week. Here's what the company told Patch about the Venice location.
VENICE, CA — Gold's Gym filed Chapter 11 bankruptcy protection this week as the fitness chain announced the permanent closure of about 30 U.S. company-owned gyms amid the pandemic. Gold's Gym in Venice remains only temporarily closed, the company told Patch.
"Gold’s Gym has been the world’s trusted fitness authority for more than 50 years, and we can assure our members that our company-owned gym in Venice is absolutely not going anywhere," Adam Zeitsiff, Gold’s Gym President & CEO, told Patch.
Gold's Gym at 360 Hampton Drive, near Sunset Avenue, remains temporarily closed under Los Angeles County's stay-at-home order.
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"We will make the decision on when to reopen when we get the green light from state and local officials and we feel it is safe for our members, team members and communities," Zeitsiff told Patch. "Gold's Gym Venice is where it all started in 1965, and we've been helping members achieve their potential through fitness ever since. We look forward to welcoming everyone back in when we reopen."
The brand's pre-negotiated, voluntary petitions for relief under Chapter 11 is a move to help restructure the company during a global pandemic, according to a news release.
The filing reportedly only impacts company-owned gyms, about 10 percent of the brand’s footprint of nearly 700 global locations.
Find out what's happening in Venice-Mar Vistafor free with the latest updates from Patch.
"This pre-negotiated filing will enable us to emerge from this global pandemic 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," Zeitsiff said in a news release.
Franchisee-owned gyms, which make up the bulk of the Gold’s Gym global footprint, are not part of this filing, according to a news release. The company does not expect the filing will affect franchisee-owned gyms.
“We want to be 100 percent clear that Gold’s Gym is not going out of business,” Zeitsiff said. “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.”
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