GNC files bankruptcy, plans to shut 800 to 1200 stores in the U.S.
Category: #business  By Mateen Dalal  Date: 2020-06-26
  • shareshare_icon
  • Twitter
  • Facebook
  • LinkedIn

GNC files bankruptcy, plans to shut 800 to 1200 stores in the U.S.

GNC (General Nutrition Centers), a renowned herbal and vitamin supplement retailer, has reportedly filed papers for bankruptcy in U.S. The company also plans to shut approximately 800 to 1200 of its store locations and is also contemplating whether to sell the business. The company, operating over the last 85 years applied for Chapter 11 protection on June 23, Tuesday at the Wilmington, Delaware US bankruptcy court.

The company had been working towards reducing its debt of more than $900 million while also dealing with declining product sales across its brick-and-mortar outlets when the COVID-19 pandemic forced thousands of the company’s locations to temporarily shut its doors, eliminating a major source of revenue for the company. Currently, over 2,100 out of the company’s 11,000 employees are still on furlough.

The Pittsburgh based firm has formulated a ‘dual path’ restructuring plan through which it will either sell itself, or will enhance its balance sheet by removing debt of more than $300 million.

The company stated that it has agreed with several lenders, in principle, to sell the business to Harbin Pharmaceutical, a renowned affiliate of its biggest shareholder for $760 million under a court-supervised asset auction, subject to bids that are higher. The company has also lined up more than $130 million in new financing, which included help from International Vitamin Corp and Harbin Pharmaceutical, its biggest vendors.

Tricia Tolivar, Chief Financial Officer, GNC, stated that the company and 16 other affiliates applied for court protection with an aim of operationally re-aligning their respective businesses, all while reducing its impact on its consumers, landlords, vendors, and employees.

Due to concerns of economic decline, business operations would continue, and less than 500 outlets remain closed due to the pandemic. The firm expects to come out of Chapter 11 by fall.

GNC operates over 8,000 stores across 50 countries, with U.S. having the highest number of company outlets.

 

Source credit: https://www.channelnewsasia.com/news/business/gnc-vitamin-chain-files-for-bankruptcy-us-may-close-1200-stores-12867178

  • shareshare_icon
  • Twitter
  • Facebook
  • LinkedIn


About Author

Mateen Dalal     twitter

Mateen Dalal

A qualified electronics and telecommunication engineer, Mateen Dalal embarked on his professional journey working as a quality and test engineer. Harnessing his passion for content creation however, Mateen pens down industry-rich articles for ReportsGO.com and a few o...

Read More..

More News By Mateen Dalal

Sony sells 10 million Play Station consoles just 294 days after launch

Sony sells 10 million Play Station consoles just 294 days after launch

By Mateen Dalal

Sony has reportedly managed to sell around 10 million Play Station 5 consoles in 249 days after its launch in November 2020. The company had sold approximately 7.8 million PS5 units as of April 2021. In comparison, approximately 10 million units of ...

Chevrolet Camaro could be replaced by a potential all-electric sedan

Chevrolet Camaro could be replaced by a potential all-electric sedan

By Mateen Dalal

Reportedly, General Motors Company is planning to replace the Chevrolet Camaro with an all-electric performance sedan in a few years with the existing model likely to be phased out by 2024. There have many reports about discontinuing the Camaro&rsqu...

Sequoia India launches Spark Fellowship to support female entrepreneurs

Sequoia India launches Spark Fellowship to support female entrepreneurs

By Mateen Dalal

The Spark fellowship program is for women entrepreneurs in India and Southeast Asia. The year-long program is aimed at bringing more gender diversity and supporting startups led by women. Sequoia Capital has recently revealed the launch of a yea...