Advertisement

GNC declares bankruptcy, will close hundreds of stores

GNC said existing plans to cut costs and reduce debt have been accelerated by the coronavirus crisis. File Photo by Roger L. Wollenberg/UPI | <a href="/News_Photos/lp/7244cb7399d49832f10c18fa4ddcbab7/" target="_blank">License Photo</a>
GNC said existing plans to cut costs and reduce debt have been accelerated by the coronavirus crisis. File Photo by Roger L. Wollenberg/UPI | License Photo

June 24 (UPI) -- Bankruptcy will force health chain GNC to close as many as one-sixth of its stores worldwide, the company has said.

GNC Holdings announced late Tuesday it will shutter between 800 and 1,200 of its 7,300 locations.

Advertisement

The company said there was already a plan in place to close hundreds of retail locations as part of a cost-cutting and debt-reducing strategy. The COVID-19 crisis "accelerated" the plan.

"We were making significant progress and were focused on refinancing the business to allow us to position ourselves for long-term growth," GNC wrote in a message to customers on its website.

"However, the COVID-19 pandemic created a situation where we were unable to accomplish our refinancing and the abrupt change in the operating environment had a dramatic negative impact on our business."

The company said it's reached a $760 million deal in principle with lenders and Chinese shareholder Harbin Pharmaceutical Group on a post-bankruptcy sale. Harbin bought a $300 million stake last year amid speculation that it intended to acquire and privatize the company.

Several large business chains have filed for bankruptcy since the start of the coronavirus pandemic, including Hertz, Pier 1 Imports, Neiman Marcus and J.C. Penney.

Advertisement

World moves to reopen amid COVID-19 pandemic

Visitors wear face masks as they tour the Whitney Museum of American Art as it reopens on September 3. Photo by John Angelillo/UPI | License Photo

Latest Headlines

Advertisement
Advertisement

Follow Us

Advertisement