#LockdownEffect: Gold's Gym files for bankruptcy protection, CureFit downsizes
When the COVID-19 pandemic started taking roots in India and other parts of the world, gyms were one of the first places to close down. Now, the grim effect of the move has started to appear, with popular fitness chains Gold's Gym and CureFit taking the worst hit. Here's all you need to know about it.
Filing for bankruptcy protection
According to a report in BBC, US-based Gold's Gym International, which operates 700+ fitness centers worldwide, has filed for bankruptcy protection due to the serious impact of COVID-19 lockdowns on its business. The move allows the company to continue its operations as it works out a plan/strategy to deal with the crisis and stay in business.
30 company-owned gyms to be closed
In a video statement, Gold's CEO Adam Zeitsiff said that the fitness chain will shut down 30 of its gyms permanently as the first step to handle this situation. "This has been a complete and total disruption of every one of our business norms, so we needed to take quick, decisive actions to enable us to get back on track," he added.
Plan to get back on track by August
While the situation is critical, Zeitsiff said that the company will come out of bankruptcy protection by August. He further went on to assure Gold's customers and employees that the fitness chain is "absolutely not going anywhere". Notably, most of the gyms run by the company around the world, including those in India, are franchises.
CureFit is also reeling from COVID-19 lockdown
In fact, closer home, Indian start-up CureFit, which runs 'Cult' fitness chain across the country, has taken a serious blow from the coronavirus-triggered lockdown. The company has issued a statement saying that it is closing operations in select Indian small towns and the UAE, and is downsizing its employee base across markets. Reports suggest that the company has laid off 1,000 employees.
Others are taking pay cuts
CureFit says that the employees who remain on board are taking pay cuts to tide over the unprecedented crisis. The founders have taken 100% cuts, while the salaries of the management team have been reduced by 50%.
