On June 23, 2020, the well-known health and wellness brand said that it reached an agreement that will allow the company to restructure its balance sheet and “accelerate its business strategy” through Chapter 11 of the U.S. Bankruptcy Code.
The global brand expects to close at least 800 to 1,200 stores overall. No stores in Hamilton are currently slated to close.
The brand will also be closing stores in Toronto, Mississauga, Vaughan, Scarborough, Markham and Orangeville.
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GNC said it’s already been working to close underperforming stores while continuing to invest in “omnichannel and brand strategies to better meet consumer demand.”
GNC said that all of its subsidiaries remain open for business and that consumers will continue to have access to goods wherever GNC products are sold.
In a statement posted to its website, GNC said it has been under financial pressure for years and was making progress until the COVID-19 pandemic–which forced numerous retailers to shut down–created a situation where the company was unable to accomplish its refinancing.
“As a result, we felt the best opportunity for us to continue to improve our capital structure and address certain operational issues was to restructure through a Chapter 11 reorganization. This gives us the opportunity to improve our balance sheet while continuing to advance our business strategy, right-size our corporate store portfolio, and strengthen our brands to protect the long-term sustainability of our company,” the company said.
In a news release, GNC says continues to serve consumers through its retail stores in many areas and is offering curbside pick-up at shopping plaza locations.