Health and wellness company GNC filed for Chapter 11 bankruptcy late Tuesday evening, saying it plans to permanently close "at least 800 to 1,200" locations across the United States.
In a statement released Wednesday, GNC revealed that it had struggled financially over the past several years but was making progress toward long-term growth. The coronavirus pandemic, however, had a "dramatic negative impact" on business.
"Our business has been under financial pressure for the past several years as we have worked to pay down debt and reposition GNC to be more competitive in a challenging operating environment," the statement reads. "We were making significant progress and were focused on refinancing the business to allow us to position ourselves for long-term growth. However, the COVID-19 pandemic created a situation where we were unable to accomplish our refinancing..."
GNC will continue operating on a smaller scale.
As the company leans on bankruptcy to help give it an "opportunity to improve our balance sheet," it will seek a potential buyer, with a minimum purchase price of $760 million.