- GNC filed for Chapter 11 bankruptcy protection late Tuesday night.
- It will close between 800 and 1,200 stores as part of the restructuring process.
- In a letter to shoppres, GNC blamed the COVID-19 pandemic for creating “a situation where we were unable to accomplish our refinancing.”
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GNC filed for Chapter 11 bankruptcy protection late on Tuesday night and said it is on the hunt for a buyer.
As part of the restructuring process, it plans to permanently close between 800 and 1,200 stores.
GNC has secured $130 million in financing – $100 million of it “new money” and $30 million in load amendments – to aid it in the restructuring. It has nearly $1 billion.
GNC’s stores will remain operating as usual in the meantime, and it said its Pro Membership benefits would reman intact.
In a letter to shoppers, GNC said 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."
GNC temporarily closed about a third of its stores to slow the spread of COVID-19 this spring. It began offering curbside pickup at locations located in shopping plazas.
The retailer said in a press release that it would be launching services for shoppers to buy online and pick up in stores later this year.