It secured $ 130 million in fresh financing from its largest supplier, the IVC vitamin supplier, to help it restructure. GNC aims to emerge from bankruptcy in the fall.
GNC explained that bankruptcy will provide the company “with the opportunity to improve our balance sheet as we continue to advance our business strategy, adjusting our portfolio of corporate stores and strengthening our brands to protect the long-term sustainability of our company.”
About 30% of its stores in the United States and Canada were forced to temporarily close due to the pandemic. In its first-quarter earnings report released in May, losses accelerated to $ 200 million, far more than the $ 15 million it lost during the same period in 2019, due to store closings.
“The Chapter 11 process will allow us to accelerate these strategies and invest in the appropriate areas to evolve in the future, while improving our capital and balance structure,” GNC said in a letter to buyers.