Gold’s Gym CEO: Ready to emerge from bankruptcy in first week of August
Gold’s Gym President and CEO Adam Zeitsiff discusses reopening gyms while coming out of bankruptcy caused by the coronavirus pandemic.
Gold's Gym is reshaping its franchise model by moving toward smaller footprints in urban areas and smaller cities as it emerges from bankruptcy.
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The Dallas-based company plans to open up smaller scale gyms ranging anywhere from 10,000-20,000 square feet that "entrepreneurs can partake in and open up all around the country," Gold's Gym CEO Adam Zeitsiff told "Varney & Co."
The company filed for Chapter 11 bankruptcy in May after shuttering dozens of gyms in response to the coronavirus pandemic.
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Zeitsiff projects the company is on track to emerge from bankruptcy proceedings by the first week of August, months after the virus hindered operations. However, Gold's Gym wasn't alone in filing for bankruptcy protection.
On Monday, 24 Hour Fitness announced the company is filing for Chapter 11 bankruptcy after having to close hundreds of gyms around the country. Meanwhile, back in April, the owner of the New York Sports Club weighed a Chapter 11 bankruptcy filing, according to a report by Bloomberg Law.
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The shift in structure doesn't mean the company plans to move away from its larger brick-and-mortar spots, however.
"Our 30,000-40,000 square foot traditional gyms are very viable all over the country and all over the world, but they weren't in some places," Zeitsiff said. "This new scalable footprint gives us the option to have both."
Zeitsiff said these smaller locations will fit well within urban areas with expensive rent or smaller cities that can't fill larger gyms.
Having both large and small scale gyms will help to "fill the void everywhere," he said.
Gold's Gym will also not scale back the number of its facilities. Rather, the company is looking to grow "aggressively through franchising" and grow the brand around the world.
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Although home workouts, which effectively replaced gym memberships, when the stay-at-home orders were put in place back in mid-March, will remain a part of people's lives, Zeitsiff projects that people will go back to the gym 3-4 times a week.
The company has offered audio and video workouts through its Gold's Amp app since 2017.
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