GNC, the retailer best known for selling body building products and supplements, has filed for chapter-11 bankruptcy in the US.
The company will also close up to 1200 out of their 5800 retail stores across the country, while they seek for additional financing to stay afloat.
As of today, GNC has been saddled with nearly $1 billion in debt, with revenues falling due to declining retail sales.
Coupled with the pandemic and failure to innovate, the 85-year-old company will need to implement drastic measures to survive in the current economic conditions.
If things go well, GNC aims to emerge from bankruptcy in the fall.
“As outlined in both potential paths, the Company expects to use this process to improve its balance sheet and capital structure while continuing to advance its business strategy, right-size GNC’s corporate store portfolio and strengthen its brands to protect the long-term sustainability of its business,” the company said in the announcement.