Gold's Gym in the U.S. files for bankruptcy due to COVID-19 threat

Gold's Gym announced it has filed for Chapter 11 bankruptcy protection due to the coronavirus disease 2019 (COVID-19) pandemic. But President and CEO Adam Zeitsiff assured the public that the gym brand is not going out of business.

In a video released on Saturday, Zeitsiff said, "Gold's Gym has been the most trusted fitness authority going on 55 years and we are absolutely not going anywhere."

Zeitsiff, however, admitted that the pandemic has affected the company "deeply and in many ways."

In a blog post published on its website, Gold's Gym admitted that over 30 company-owned gyms have permanently closed down to "maintain the strength and growth of the potential of the brand as well as ensure the continued viability of the company for decades to come."

The company clarified that the filing should not impact the company's licensing division nor will it stop them from offering support to its system of nearly 700 gyms around the world.

This includes Gold's Gym branches in the Philippines, which has temporarily closed down since March due to the enhanced community quarantine.

"I want to make it extremely clear that their businesses are independent from ours and not tied to this filing in any way," Zeitsiff shared. "Our franchisees who have also temporarily closed due to the pandemic are facing challenges too and we are working hand in hand to reopen their gyms as well."

Zeitsiff shared that the focus of their company since the beginning of the crisis has always been the health and safety of its members and the communities it serves.

"This pre-negotiated filing will enable us to emerge stronger and ready to grow, and it is our intent to be on the other side of Chapter 11 by August 1, if not sooner," the company said.

Shortly before the filing for bankruptcy announcement, Gold's Gym in the Philippines released a statement explaining why fitness studios and sports facilities should resume operations under the proposed general community quarantine (GCQ).

"As we prepare for a new normal, regular exercise should be included in a person’s regimen to boost his immunity further alongside proper nutrition, sufficient rest and hydration," said Mylene Dayrit, Gold's Gym President and CEO in the Philippines.

She cited studies that showed severe COVID-19 cases "which led to mortality included those who are obese, smokers, or with existing lifestyle diseases such as heart disease, stroke, type-two diabetes and other diseases linked to smoking, alcohol and drug abuse" as well as the US government's move to put gyms under essential services that needed to resume.

"In the United States the new epicenter of the pandemic with a third of the global cases, gyms are part of those that were opened first when the lockdown was lifted," said Dayrit.  

Finally, Dayrit emphasized the importance of exercise in managing stress.

According to Dayrit, Gold's Gym is well aware of the protocols they will need should they be allowed to resume operations.

"I have seen how Filipinos have been cooperating and following new norms in drugstores, groceries, and banks. I am confident gym-goers will follow the new norms of gyms while the pandemic rages on."   

All 26 Gold's Gym clubs have been closed since March 16 but reassured its members that their membership will be extended according to the number of days it has been closed.

The statement came one day after Trade Secretary Ramon Lopez said gyms are not advisable to operate even under GCQ because they are high-risk.

“Under the GCQ hindi muna [allowed] so high-risk kasi as we review the sectors to be opened, it is always finding the balance between transmission rate, potential transmission rate and essential nature of the business,” the Trade Secretary explained.

Citing advice from health experts, he said that the virus could linger on gym equipment.

“[And] it’s so difficult to really check frequently kung sanitized itong mga items na to. The gym equipment in general,” Lopez said. “Marami sila hinahawakan diyan, metal pa so hindi po advisable na mag operate muna,” he added. 

Beginning May 1, areas in the country with low and moderate risk of COVID-19 outbreak will be under GCQ while strict confinement measures will remain in localities under the ECQ until May 15. 

The government has released a list of businesses that would be allowed to operate during the ECQ and GCQ. — Kaela Malig and Jannielyn Ann Bigtas/LA, GMA News