The life has become unpredictable and unnatural, isn’t it?
The Coronavirus had led to a lockdown which has smashed the business of fitness centers big time – ranging from a neighborhood gym to a giant like Gold gym and Cultfit. When the pandemic started spreading in India and the other part of the globe, health centers were the first to shut down. The risk of coronavirus has made the fitness industry indisposed with smaller gyms on the edge of closing down, larger chains anticipating enormous losses and joblessness becoming a very genuine concern for overabundance fitness trainers and back end employees. The industry is collapsing under the threat of the Covid 19.
Gold Gym filed for Bankruptcy
The dreadful news came that Gold Gym, recognized globally for its gyms, has filed for Chapter 11 bankruptcy protection of the country’s bankruptcy code in the US. The company made this announcement on 4th May 2020, Monday and stated that the decision has been taken in an attempt to facilitate the financial reformation of the company amidst this pandemic, which has practically closed down the entire economy of US. The reason being, due to the current scenario almost the entire globe has come to a stand still for a long time.
The financial situation and the economy has been gravely affected and the ugly effect of the lock down has started to emerge, the famous fitness Gold’s Gym filing for bankruptcy itself is a biggest hit on the industry. As per a report in BBC, Gold Gym established in US, which runs 700 + fitness clubs worldwide, has declared for bankruptcy due to severe effect of the Coronavirus lock down on its financial situation. This permits the company to carry on its function while they workout on an approach to deal with the predicament and remain in the business.
Fitness Industry has suffered heavily due to Lockdown
The CEO of the company Adam Zitsif said in a video announcement, “Our business was harshly impaired due to the pandemic catastrophe, which has made it compulsory for us to take instant and conclusive steps, so that we can get back on track again.”. He guaranteed his customers and staff that they plan to appear from insolvency by August. He even mentioned that this will not have any additional impact on its existing operations.
Gold’s Gym perpetually closed 30 of its outlet during the Corona Virus outburst in order to ensure sustainability, the reason remains the present scenario. Though, the company stated that the filing of bankruptcy “should not affect our authorizing division” as it is not connected with any of its franchise gyms. The company will be looking for the sanction from the court to pay its personnel, dealers and vendors pulling ahead the normal way. This is the only circumstance which has triggered more detriment to the business than the prevailing pandemic situation worldwide
Gold gym – The Best Fitness Chain
India has reportedly 120 Gold Gym fitness chains, located in metros. It is acknowledged for its unbeatable success in providing the optimum services and serving its member to accomplish their goals with all modern amenities. Gold gym is a gym for people who wanted variety in their workout. The gym belonged to the riches and a class of society. The membership was on an annual basis. The first Gold gym was opened in 2002 in Mumbai. It was established in Venice, California and has remained favorite of all the fitness establishments for over 50 years. The founder of the gym was former bodybuilder Joe Gold, he spoke about the company’s fiscal condition in a video displayed on You tube. Covid 19 has cropped up as a huge loss for entire fitness fraternity.