GNC Holdings, which owns about 7,300 GNC nutrition supplement stores and has outlets in almost 50 countries, has filed for Chapter 11 bankruptcy. It plans to shed about 1,200 shops, and has put itself up for sale.
The company blamed the economic shutdown, suppliers demanding quicker payments, interest payments due on bonded debt, and underperforming stores for its woes.
GNC reported reaching agreement with its creditors to restructure its debts.
The company’s creditors are financing GNC’s bankruptcy process and have given the company six months to find a buyer or reorganize as a leaner company with less debt.
Harbin Pharmaceutical Group, China’s largest drug company and GNC’s largest shareholder, reportedly has expressed interest in buying the chain for $750 million, an amount short of the company’s $903 million worth of debts.
GNC brought in about $2 billion in revenue in 2019, with $1.8 billion coming from its U.S. and Canadian locations.
