- Real Estate
- Food & Drink
June 24, 2020
GNC Holdings Inc. has filed for bankruptcy and will close two corporate-owned stores in South Dakota, but the two retail stores in Sioux Falls and the one in Brookings are owned by a franchisee and are not part of the filing.
The reorganization will include the closing of underperforming corporate stores, the nutrition product company said in a news release. Before the Chapter 11 bankruptcy filing, Pittsburgh-based GNC had identified at least 800 stores and up to 1,200 that it planned to eliminate. It has 5,200 retail locations in the U.S. and 2,100 sites in 50 other countries.
The franchised locations in Sioux Falls are in The Empire Mall and at Dawley Farm Village. Corporate-owned stores in Yankton and on the Ellsworth Air Force Base are closing. Two stores in Rapid City and one in Aberdeen will remain open.
The COVID-19 pandemic pushed the already-struggling company to file for bankruptcy.
“We were making significant progress and were focused on refinancing the business to allow us to position ourselves for long-term growth,” GNC wrote in a message to customers on its website.
“However, the COVID-19 pandemic created a situation where we were unable to accomplish our refinancing and the abrupt change in the operating environment had a dramatic negative impact on our business.”
GNC has reached an agreement with its creditors, which if approved by the U.S. Bankruptcy Court, will allow it to restructure its balance sheet, the company said in a news release.
It also is working on an alternative plan to sell the company for $760 million through a court-supervised auction process, which could result in a higher bid. The company expects to emerge from bankruptcy in the fall of this year.
Other retailers with Sioux Falls locations that have filed for bankruptcy this year include J.C. Penney, Pier 1 Imports, Hertz and Stage Stores, the parent company of Gordmans.
GNC Holdings Inc. has filed for bankruptcy, but the two retail stores in Sioux Falls and the one in Brookings are owned by a franchisee and are not part of the filing.