Gold’s Gym is set to be acquired by RSG Group after they were selected as the winning bidder in a court-approved auction process held on July 13. With this acquisition, RSG Group, which has mainly been active in Europe up to now, will have 1,000 locations on six continents.
This acquisition comes after Gold’s Gym was hit hard by the economic shutdown due to the COVID-19 pandemic.
Privately held Gold’s Gym announced in mid-April the permanent closure of 30 company-owned locations due to the coronavirus pandemic, and filed voluntary petitions for relief under Chapter 11 back in May, in an effort to facilitate the financial restructuring of the company.
According to the RSG Group press release, in mid-May, as part of the initial bankruptcy filing, Gold’s Gym announced its plan to emerge from bankruptcy quickly through a pre-negotiated plan from its majority owner, TRT Holdings, Inc.
After negotiations, Gold’s Gym announced in May that they would implement a court-approved marketing process. At the conclusion of the auction on July 13 — subject to final approval from the bankruptcy court on July 24 — RSG Group was named purchaser of the company and its assets, with an estimated final purchase price of $100 million.
“RSG Group has nearly 25 years of owner-managed expertise in the fitness sector across Europe,” said Adam Zeitsiff, the president and CEO of Gold’s Gym in a LinkedIn post. “They live and breathe fitness, and that is reflected in everything they do, and how they do it in all aspects of their business. This acquisition will open up brand-new opportunities to lead our brand into a strong future together, and allow us to continue our 55-year legacy of being the world’s trusted fitness authority.”
Subject to final approval, Gold’s Gym will emerge from bankruptcy with 61 company-owned gyms and more than 600 franchise-owned gyms, along with a healthy balance sheet.
Read the full press release, here.
