Gold's Gym Files Under Chapter 11

Gold's Gym, with about 700 locations worldwide, filed for protection from creditors under Chapter 11 of the bankruptcy laws.
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Gold's Gym filed for protection from creditors under Chapter 11 of the bankruptcy laws as the fitness chain deals with the closure of outlets across the country due to the coronavirus pandemic. 

Gold's, which franchises most of its locations, recently said it would permanently close 30 company-owned locations. 

But Gold's, a unit of the closely held Dallas investment firm TRT Holdings, says that the bankruptcy will have "no further impact on current operations."

The filing was made in U.S. Bankruptcy Court in Dallas, Bloomberg reported.

Gold's has nearly 700 fitness centers worldwide.

"To be clear, the filing should not impact our licensing division, it is not associated with any of our locally owned franchise gyms, nor will it prevent us from continuing to support our system of nearly 700 gyms around the world," the company said. 

Gold's plans to reopen its remaining locations when authorities say it's OK to do so.

"Our focus is and always will be on our members around the world, and we look forward to welcoming them back as soon as it is safe for our members, team members and communities," the more than 50-year-old company said. 

Gold's said it hoped to exit Chapter 11 proceedings by Aug. 1.

Peer fitness company Peloton  (PTON) - Get Report is expected to report fiscal-third-quarter earnings on May 6. 

Investors will be watching to see whether the New York at-home fitness-equipment and -services provider has benefited from the same stay-at-home orders that have prompted businesses like Gold's to close some or all of their outlets.  

Analysts surveyed by FactSet are expecting Peloton to report profit of 18 cents a share, or an adjusted 16 cents, for the quarter.

Another peer company, Planet Fitness  (PLNT) - Get Report, is set to report first-quarter results on May 5. Analysts estimate earnings of 32 cents a share, or an adjusted 34 cents.

Peloton shares at last check were trading up 4.3% at $33.43 while Planet Fitness was off 3% at $55.88.