On June 23rd, GNC announced they will be restructuring through Chapter 11 Bankruptcy. This is the one where though the store is filing bankruptcy, it is not the end of the company forever. Through filing Chapter 11, GNC will have the opportunity to “improve our balance sheet while continuing to advance our business strategy, right-size our corporate store portfolio, and strengthen our brands to protect the long-term sustainability of our company. ”
So how does this effect consumers?
“As part of our restructuring, we expect to accelerate the closure of at least 800 to 1,200 stores in our portfolio, many of which were previously announced with the process underway. By doing so, we will be exiting unfavorable lease terms burdening our business more quickly and shifting resources to our standalone store locations where we are seeing significantly more consumer foot traffic. We will communicate specific updates around potential closures as we progress in the Chapter 11 process. While select corporate stores will eventually close, we encourage you to seek out one of our other store locations in your area. Please note that even closing stores may remain open for a period of time.”
GNC does indicate that loyalty reward points will still be honored, gift cards are still valid and their return policy is still in effect!
Hopefully this action will give the retailer a chance to strengthen it’s remaining stores.