The detailing of products to health and nutrition GNC has filed for bankruptcy in the United States and announces that it will close at least 29 stores in Canada within the framework of its restructuring. The company announced Tuesday evening that it was seeking protection under chapter 11 of the bankruptcy Code of the United States and will also try to get a canadian court to recognize this procedure.
The restructuring involves the closure of 29 GNC stores in Canada, approximately half of which are in Ontario. A full list is available here.
The stores affected are only a small part of the overall presence of the business in Canada, which, according to her, includes over 200 points of sale at retail.
Many company-owned stores have been temporarily closed due to restrictions imposed by the pandemic COVID-19. The company claims to have lost us $ 200 million in the first quarter as a result of these closings are unexpected, which is more than 10 times the loss it had reported for the same quarter in 2019.
Closures canadian represent only a small part of the larger plan for the retailer, which includes the closure of 800 to 1,200 stores worldwide, primarily in the United States. On 30 march, the company had 7 300 stores around the world, including 5 200 in the United States.
Only 248 locations planned for closure has been publicly announced, which means that more locations in canada could be added to the final count.
It is not clear how many jobs will be affected by the closures. The company said it would honour gift cards existing, would maintain its loyalty program and would retain its existing policies regarding returns and refunds.
The company stated that it had received funding from its largest supplier and hope to get out of bankruptcy later this year.
In a statement posted on its website, GNC has indicated that it was facing financial difficulties for several years, aggravated by the pandemic, which led to the decision to open bankruptcy proceedings.
“This gives us the opportunity to improve our balance sheet while continuing to advance our business strategy, to right-size our portfolio of corporate stores and to strengthen our brands in order to protect the long-term sustainability of our business,” said the company.
CNG stated that other plans, which, they hope, will lead to a better financial situation, which include the launch of a portal for online ordering and the introduction of new products.