Texas
Related: About this forumGold's Gym files for bankruptcy, as closures put Dallas-based chain behind on debt payments
Dallas-based fitness chain Golds 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.
Golds 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 doesnt impact the clubs franchise operators, which run about 90% of all Golds 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 Golds 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
(34,661 posts)and never carry a reserve. You get the end result.
jimfields33
(16,018 posts)Of course you shut down for 3 months none of this is shocking. More closings to come.
Wellstone ruled
(34,661 posts)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
(16,018 posts)You cant close for 3 months and survive even with reserves.
calguy
(5,338 posts)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
(16,018 posts)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 Macys might be done. Jc pennys 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. Its going to be what downtowns are now in the suburbs after all of this.
Laelth
(32,017 posts)... one third of all restaurants are gone.
Thats a lot of lost jobs.
-Laelth
Wellstone ruled
(34,661 posts)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
(38,187 posts)I never thought I would see them go under.
Laelth
(32,017 posts)But were still in business!
Whats the big deal? Right?
-Laelth
Bayard
(22,181 posts)I worked for them many years ago as an instructor in Louisville.