38.6c New Delhi, India, Thursday, October 31, 2024
Top Stories Supreme Court
Political NEWS Legislative Corner Celebstreet International Videos
Subscribe Contact Us
close
Business

COVID 19: Golds Gym Files for Bankruptcy

By Shubham Jindal      06 May, 2020 01:21 PM      0 Comments
GoldGym Files for Bankruptcy

US- Based Golds gym, a renowned name among bodybuilders all over the world has been severely affected by the ongoing COVID-19 pandemic. The company has, on May 4, 2020, filed for bankruptcy protection under Chapter 11 of The Bankruptcy Code of the USA.

The company, in its official statement, stated that the pre-negotiated filing would enable it to emerge stronger and ready to grow and that it intends to be on the other side of Chapter 11 by August 1. 

However, concluding that all of over 700 outlets of Golds gym will have to pack their bags would be incorrect. This is because the company owned gyms form a very small part of Gold gyms outlets all over the world. A majority of outlets work through licensing and not through direct ownership of the company.

In an official statement, the company clarified that only 30 of the company-owned gyms, owing to viability will have to be shut with immediate effect. The claim would have no effect on its licensing division. 

Therefore, it is safe to conclude that no Golds gym outlet in India will be affected by the decision.

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.  

However, it is also true that filing under Chapter 11 is the most complex of all bankruptcy cases and is usually the most expensive bankruptcy proceeding and is usually taken as the last alternative. 

Businesses across the world and particularly establishments such as cinema halls, gyms, and shopping malls are facing the brunt of the ongoing COVID-19 pandemic. 

 



Share this article:



Leave a feedback about this
TRENDING NEWS


TOP STORIES

sc-tells-ncp-led-by-ajit-pawar-to-declare-use-of-clock-symbol-sub-judice
Trending Judiciary
SC tells NCP led by Ajit Pawar to declare use of Clock symbol sub judice

SC directs Ajit Pawar-led NCP to declare ‘Clock’ symbol use as sub judice in all election materials, pending final court ruling on its rightful ownership.

25 October, 2024 11:12 AM
justice-sanjiv-khanna-to-take-oath-as-chief-justice-of-india-on-nov-11-2024
Trending Legal Insiders
Justice Sanjiv Khanna to take oath as Chief Justice of India on Nov 11, 2024 [Read Notification]

Justice Sanjiv Khanna appointed as the 51st Chief Justice of India, succeeding CJI Chandrachud, with a tenure starting on November 11, 2024.

25 October, 2024 11:17 AM
sc-grants-bail-to-businessman-in-delhi-liquor-policy-scam-case
Trending Judiciary
SC grants bail to businessman in Delhi liquor policy scam case

Supreme Court grants bail to businessman Amandeep Singh Dhall in Delhi liquor policy scam case, noting the lengthy trial process with over 300 witnesses.

25 October, 2024 04:11 PM
sc-dismisses-ex-jharkhand-cms-plea-for-suspension-of-conviction-to-allow-him-contest-assembly-polls
Trending Judiciary
SC dismisses ex Jharkhand CM's plea for suspension of conviction to allow him contest Assembly polls

The Supreme Court rejects ex-Jharkhand CM Madhu Koda’s plea to stay his conviction, barring him from contesting the upcoming Assembly elections.

25 October, 2024 05:10 PM

ADVERTISEMENT


Join Group

Signup for Our Newsletter

Get Exclusive access to members only content by email