The announcement comes after GNC filed for Chapter 11 bankruptcy protection on Tuesday.
What’s next for GNC after filing for Chapter 11 bankruptcy? Health and nutrition store GNC has announced the closure of its 1,200 locations. The announcement comes after the company filed for Chapter 11 bankruptcy protection on Tuesday.
GNC has also said it is looking for a buyer.
End of the road
The 85-year-old company said the closures were only an acceleration of the pre-COVID project. The company says it intends to close somewhere between 800 and 1,200 stores before the epidemic. Many of these locations have already started selling liquidation.
In early July 2019, GNC announced it would close all of its shopping mall locations. The COVID-19 crisis is only a catalyst.
The reason for the reduction of GNC is twofold.
First, like most individual retailers, GNC faced stiff competition from the online marketplace. This franchise earns most of its profits by selling health supplements, a product that is easily sold online.
Many affiliate brands have found great marketing success on social media. And most products can be purchased directly from manufacturers or through an online superstore like Amazon. The brick-and-mortar GNC shop has no chance.
In recent years, GNC has over $1 billion in debt, all through online competitors.
An elastic infection
Second, the coronavirus played a major role in the decline of the GNC. The COVID-19 epidemic has prevented customers from entering GNC stores, resulting in a recession that has caused many to maintain tight wallets. All of this was enough to push the failed vitamin owner to the brink.
What’s next for GNC after filing for Chapter 11 bankruptcy?
Filing for Chapter 11 bankruptcy does not mean the end of the road to GNC. The filing will allow the company to refinance its funds as it attempts to float.
The GNC has about 5,200 locations in America and 7,300 locations worldwide. The closure of 1,200 stores will mean a quarter of its domestic retailers. However, a notice on the GNC site explains that the final locations are also open until they can sell their products.
Closures that happen near you
You can follow this link to look for any affected store in your area. Keep in mind that you will have a few more months to use the liquidation sale.