Protein powders and vitamins are apparently unfit to survive the coronavirus pandemic.
Health and wellness supplier GNC Holdings filed for Chapter 11 bankruptcy protection in an attempt to cut its debt load and restructure.
While GNC was certainly impacted by the coronavirus pandemic along with the rest of its fellow retailers, the retailer entered the economic shutdown at a disadvantage. GNC entered the crisis with significant debt paired with falling sales at 5,200 U.S. stores and 1,600 locations within Rite Aid stores on top of international operations.
GNC will look to shutter a minimum of 800-1,200 stores, which are largely located in shopping centers and malls.
The company will continue to operate as it seeks a buyer with an initial price tag of $760 million.
GNC also disclosed plans to further optimize its stores and omnichannel strategy with a plan to implement a buy-online-pick-up-in-store shopping experience later this year.
“With an 85-year history of science-backed innovation, the GNC brand remains a strong, trusted source for health and wellness products, which are increasingly important in today's environment,” the company said in a press release.
If you’re an owner of GNC stock, what do you do now?
Jim Cramer said he hasn't liked GNC for years and when it comes down to it, GNC just proved him write. "Don't own mall stocks," Cramer said.