Listen Live

Officials with GNC Holdings Inc. announced Tuesday that the health and wellness retailer has filed for chapter 11 bankruptcy protection with plans to sell itself and to close as many as 1,200 stores.

The decision was made as authorities continue to order some businesses to remain closed due to the ongoing threat of the coronavirus pandemic. In April, GNC announced a hiring freeze and temporary furloughs to protect the company, which suffered a net loss of $200.1 million in the first quarter of 2020, attributed partially to the shutdown. The company has also been grappling with nearly $1 billion of debt, according to CNN.

The Pittsburgh-based company said Tuesday in a statement that it had reached a deal with its creditors to pursue a dual-path restructuring process that will accelerate the already planned closure of under performing stores.

“This acceleration will allow GNC to invest in the appropriate areas to evolve for the future, better positioning the Company to meet current and future consumer demand around the world,” company officials said in the statement.

GNC, its lenders and China-based Harbin Pharmaceutical Group Holding Co., an affiliate of the company’s largest shareholder, have also reached an agreement to sell GNC in a court-supervised auction process. With the approval of a bankruptcy judge, bids are expected to start at $760 million, Bloomberg reported.

Company officials expect GNC to emerge from bankruptcy proceedings in the fall

GNC Discusses Bankruptcy Loan Before June 15 Debt Trigger

A pedestrian wearing a protective mask walks past a boarded up GNC store in Washington, D.C., U.S., on June 4, 2020.