The company has almost $1 billion in debt.
Vitamin and dietary supplement company GNC is the latest casualty of the coronavirus pandemic. The corporation is filing for Chapter 11 bankruptcy and has announced plans to close roughly 20 percent of its stores.
A statement from the company said that the bankruptcy will give it the "opportunity to improve our balance sheet while continuing to advance our business strategy, right-size our corporate store portfolio, and strengthen our brands to protect the long-term sustainability of our company." Plans to refinance and alleviate some of the stress of their debt prior to the COVID-19 outbreak were cut short.
Roughly 30 percent of GNC's 5,800 retail locations had to temporarily close during stay-at-home orders, and many customers began purchasing their GNC products online. As a result, the company suffered $200 million in losses in the first quarter of 2020 and now reports almost $1 billion in debt.
As part of the bankruptcy filing, GNC is looking to premanently shutter at least 1,200 stores.
GNC isn't the only big name to file Chapter 11 this week. CEC Entertainment, parent company of Chuck E. Cheese, also announced its Chapter 11 bankruptcy and the resulting closure of 45 restaurant locations, in an attempt to restructure toward longterm success.