Gold’s Gym could exit from Chapter 11 bankruptcy protection as soon as this month, after RSG Group GmbH’s $100 million bid to acquire the multinational fitness center chain emerged as the top offer at a bankruptcy auction on July 13. The sale must be approved by a bankruptcy judge; a hearing is scheduled for July 24.
The Gold’s Gym bankruptcy filing on May 4 included a pre-negotiated $80 million bid from TRT Holdings Inc., which has held the majority share of the company since 2004. Due to COVID-19, Gold’s gyms and fitness studios have been closed for various periods of time depending on local government regulations.
Based in Berlin, RSG Group owns the McFIT fitness studio chain, the John Reed family of four fitness brands and various other businesses, including a sports nutrition company and a modeling agency. Gold’s, established in 1965 in Venice, Calif., operates 61 company-owned gyms, and franchisees own and operate 600 more. With the addition of Gold’s, RSG Group will expand to more than 900 locations worldwide.
Rainer Schaller, the RSG Group’s Founder and CEO, said in a release that he will work with Gold Gym’s current leadership team “to breathe new life into this iconic brand.”
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“As we bring together our two teams, it is particularly important that we actively involve all team members and franchisees in the process,” said Sebastian Schoepe, President of the RSG Group North America in a statement. “If we integrate their ideas into the expansion of the brand, we are confident that we will achieve our goal of leading Gold’s Gym into a successful future.” Schoepe will be responsible for the migration of the Gold’s Gym brand into the RSG Group.
“For us, this acquisition will open up brand-new opportunities to lead Gold’s Gym into a strong future together,” said Gold’s Gym President and CEO Adam Zeitsiff in a statement. “We look forward to much success for our team members, our members and our global brand.”
