CNG declares bankruptcy, with plans to close up to 1,200 stores

GNC Holdings Inc. GNC,
He filed for bankruptcy Tuesday night as he hopes to accelerate his plan to close at least 800-1,200 of his stores. The action has been halted by news since Tuesday night. The vitamin and wellness supplement retailer, with approximately 7,300 stores as of March 31, said its stores will remain open as the company has secured $ 130 million in liquidity, including $ 100 million in borrower-in-possession financing and $ 30 million for modifications to an existing CNG line of credit, the majority of its guaranteed lenders and Harbin Pharmaceutical Group Holding Co. Ltd., a subsidiary of CNG’s largest shareholder, have reached an agreement in principle for the sale of the company’s business for $ 760 million, which would be executed through a court. Supervised auction. The stock is up 74.2% in the past three months through Tuesday, but is down 70.0% to date, while the S&P 500 SPX,
+ 0.43%
It has fallen 3.1% this year.