(Photo: GNC)

GNC files for bankruptcy and restructuring company

More businesses are in decline due to the coronavirus (COVID-19) pandemic and re-evaluating future business operations, including vitamin and supplement company GNC. A majority of brick-and-mortar GNC locations are seeing a decrease in traffic with nearly a third of stores closed since the start of the COVID-19 outbreak.

GNC officially filed for Chapter 11 bankruptcy and is looking for a new buyer while implementing a new restructuring plan. GNC’s new plan for restructuring could involve closing between 800 to 1,200 stores but stores plan on operating as usual including Pro Membership benefits.

GNC addressed clients saying that they’re in the process of restructuring and refinancing to work around the abrupt change in operating protocols. Brick-and-mortar locations offer curbside pickup and GNC is working to launch a service later this year that allows customers to buy online and pick up in-store.

GNC is already in trouble to keep up with competitors such as The Vitamin Shoppe due to adapting to e-commerce quicker and large amount of physical locations. When COVID-19 forced a majority of businesses to close, driving most customers to shop online instead and GNC wasn’t ready for this transition.

GNC also has a disadvantage through relying too much on the business of physical locations rather than e-commerce. GNC is reevaluating their business strategy navigating around issues with expensive real estate, dropping sales, and burdensome debt.