Pittsburgh, Pennsylvania-based GNC Holdings, a retailer of health and nutrition-related products, has filed for Chapter 11 Bankruptcy. As part of their restructuring and cost-cutting efforts, the company plans to close from 800 to 1,200 stores. The company is for sale through a court-supervised auction. Hundreds of employees are at risk for permanent layoff.
The company has been severely impacted by COVID-19 mandated closures of its stores and the precipitous drop in workout-related nutrition products. The company has also been impacted by the online marketing of similar products at discount prices and often with free delivery.
A company statement noted, "As outlined in both potential paths, the Company expects to use this process to improve its balance sheet and capital structure while continuing to advance its business strategy, right-size GNC's corporate store portfolio, and strengthen its brands to protect the long-term sustainability of its business."
"Over the past year, GNC has been executing a store portfolio optimization strategy to close underperforming stores, while continuing to invest in omnichannel and brand strategies to better meet consumer demand. This process will enable GNC to accelerate these strategies, including its store portfolio optimization. GNC expects to accelerate the closure of at least 800 to 1,200 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."
"GNC remains committed to delivering wellness solutions to its consumers through easier and enhanced options to live well, from a strong product pipeline to an improved e-commerce experience. The Company will be launching the option to buy-online-pick-up-in-store later this year and has a robust innovation pipeline of ingredients and products to bring to market over the next three years."
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?