Posted on 06/24/2020 7:48:13 AM PDT by SeekAndFind
Another retailer has succumbed to bankruptcy during the coronavirus pandemic as health and wellness chain GNC Holdings announced that it has filed for Chapter 11 and will close as many as 1,200 stores as it looks to sell off its business.
Thanks to the impact of the coronavirus, GNC said it was unable to refinance its debt load after what it called a “dramatic negative impact” on its business.
GNC said it will emerge from bankruptcy “expeditiously” as it has the support of its creditors through a restructuring support agreement that will execute more than 92% of its term lenders and 87% of its supporting secured lenders. The company expects to emerge from bankruptcy by the Fall of 2020.
Through the bankruptcy protection filing, the company is looking to restructure its balance sheet and accelerate its business strategy as it looks to position itself for long-term success. The company has secured about $130 in additional liquidity with $100 million in debtor-in-possession financing and $30 million from its existing credit agreement.
The company has also reached an agreement for the sale of its business through its supporting secured lenders and its largest shareholder, Harbin Pharmaceutical Group Holding Co., Ltd. GNC has outlined an agreement for a $760 million purchase price, which will be facilitated through a court-supervised auction that will allow for “higher and better bids” to be offered.
GNC will also “accelerate” the closure of at least 800 to 1,200 underperforming stores, which it previously announced it was closing. GNC has about 5,200 stores located in the U.S. and about 7,300 locations globally.
During the restructuring, GNC will remain open for business and will continue to offer curbside pickup and e-commerce sales. The company will continue to receive a supply of products through its joint venture partner, IVC.
(Excerpt) Read more at ibtimes.com ...
It always seemed very nitch and over priced to me.
I think Amazon killed them with better pricing.
They were forced to stay closed during the lock down while CVS was allowed to open. Can’t believe they didn’t have lawyers to fight the store lock downs.
That's not much liquidity. You would think they would have more than that in the register.
Amazon has better prices on GNC items than GNC does.
I noticed over the last several years they were hawking more energy and testosterone supplements and not much of the nutritional items that stores such as The Vitamin Shoppe carried. I also seem to remember they had a lot of mall locations which couldn't be good.
Dayum. Kinda harsh, don'tcha think? Then again, we're always told that investing is risky.
Reminds me of that scene from The Jerk.
Expect GNC products to be sold primarily by drug store chains like CVS, Walgreens, and Rite Aid very soon.
A nitch retailer that is mostly bricks and mortar is a questionable enterprise when that nitch (other than the GNC brand name) is also sold by many generalist retailers and retail specialists like supermarkets, pharmacies and health food stores, as well as dozens of Internet retail venues and all the “big box” stores.
I think if there is any superior value in the GNC branded items, then the GNC survival story may be in the GNC brand getting into all the retailers the GNC stores have been competing with, with all the GNC stores closing. But, I am not clear on just how great is the GNC branded items, in terms of quality. That answer some experts on the subject would no better than I.
My mom was an early 70’s health nut and would shop there often. She eventually stopped, feeling they had become too niche-y and overpriced. Headquartered in downtown Pittsburgh where I’m sure there will be some jobs lost.
Oh the horrible memories of wheat germ and carob.
Its largest shareholder is Chinese. Harbin Pharmaceutical Holdgs.
Newspapers used to have copy editors so that the reporters wouldn’t embarass themselves. Now everyone can see how sloppy reporters really are.
And the testosterone supplements don’t work. Uhh...so I have been told. :)
They weren’t that great anyways. I always wondered how they managed to stay in business.
“”””Amazon has better prices on GNC items than GNC does.”””
But I would never give a penny to Bezos, who hates conservatives, so there’s that.
Seriously never understood how this place stayed in business, there was never anyone in there that I could see. I honestly thought it was a very sophisticated Front Operation this whole time.
Vitamins will be discounted. woo hoo!
It is said when you are in a deadmall, the GNC store is the last store to leave...
I quit going there many years ago. I went to a local store to pick up some things. When I was checking out the guy kept trying to force me to buy vitamins I did not want nor need. I have not gone back.
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