After permanently closing 30 gyms because of the COVID-19 pandemic, GGI Holdings, the owners of Gold’s Gym, has filed for Chapter 11 bankruptcy protection. Through the restructuring, the company intends to emerge from bankruptcy by Aug. 1 or sooner.

The bankruptcy filing will not impact franchise locations or company-owned gyms as GGI said in a statement, “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.”

The Chapter 11 filing is expected to allow Gold’s Gym to continue to pay wages, healthcare coverage, vacation, and other benefits to its employees as the company works to re-open its gyms in accordance with state, local, and federal guidelines.

The company said it will continue to support its global franchise locations and pay its suppliers and vendors through the ordinary course of business going forward. GGI has been working with its landlords to re-open its gyms and become an “stronger” business after the pandemic is over.

While Gold’s Gyms are currently closed because of the coronavirus situation, the company said it looks forward to welcoming its members back as soon as it is safe. The company emphasized that it is “absolutely not going anywhere.”

Gold's Gym
Gold's Gym said it will be closing about 30 locations permanently. People work out at a Gold’s Gym March 16, 2020 in Washington, DC. The Trump administration issued guidelines on Monday recommending that no more than 10 people gather in one place at the same time in order to help reduce the outbreak of the coronavirus (COVID-19). Getty Images/Alex Wong
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