GNC Recordsdata For Chapter And Will Shut 6 Shops In Massachusetts – CBS dangolka

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(CBS/CNN) — GNC has filed for chapter, warning it’s going to shut as much as 1 / 4 of its shops and seek for a purchaser.
The 85-year-old vitamin and dietary complement firm has been saddled with practically $1 billion of debt and has confronted declining gross sales at its brick-and-mortar areas since earlier than the pandemic. Nevertheless, GNC mentioned that stay-at-home orders through the Covid-19 pandemic prevented the corporate from conducting its refinancing plans due to the abrupt “dramatic adverse impression” on its enterprise.
GNC will proceed working, however it’s going to develop into a smaller firm. It plans to shut as much as 20% of its 5,800 retail shops, which quantities to as many as 1,200 areas throughout the US. GNC additionally sells its merchandise in an extra 1,200 Ceremony Help shops.
In accordance with GNC’s web site, shops in Auburn, Walpole, North Attleboro, Danvers, New Bedford and Springfield will shut. A retailer in Gilford, New Hampshire will even shut down.
It obtained $130 million in contemporary financing from its largest vendor, vitamin provider IVC, to assist it restructure. GNC goals to emerge from chapter within the fall.
GNC defined that chapter will give the corporate an “alternative to enhance our stability sheet whereas persevering with to advance our enterprise technique, right-size our company retailer portfolio, and strengthen our manufacturers to guard the long-term sustainability of our firm.”
Round 30% of its shops in the US and Canada had been compelled to quickly shut due to the pandemic. In its first-quarter earnings report launched in Might, losses accelerated to $200 million — way over the $15 million it misplaced throughout the identical time interval in 2019 — due to the shop closures.
“The Chapter 11 course of will enable us to speed up these methods and put money into the suitable areas to evolve sooner or later, whereas enhancing our capital construction and stability sheet,” GNC mentioned in a letter to customers.
(© Copyright 2020 CBS Broadcasting Inc. All Rights Reserved. CNN’s Jordan Valinsky contributed to this report.)

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