The US-based seller of supplements and vitamins has filed for Chapter 11 and pursues a dual-track restructuring or the sale of the business
GNC Holdings has filed for Chapter 11 bankruptcy. The company said in a statement the business is using the Chapter 11 framework to right-size store portfolio and improve its capital structure. The Chapter 11 process does not include franchise partners and corporate entities outside North America.
Based in Pennsylvania, in the US, GNC is a global seller of health and nutrition related products, including vitamins, supplements, minerals, herbs, sports nutrition, diet, and energy products.
GNC said the company seeks a dual-track restructuring or going concern sale process. The purchase price of the business has been agreed to $760 million.
GNC expects to confirm the reorganisation plan or consummate a sale that will enable the business to exit from this process in the autumn of this year.
In addition, GNC has secured approximately $130 million in fresh capital from debtor-in-possession financing and $30 million from modifications to the existing ABL credit agreement.
“The company is confident that between financing and cash flow from normal operations, and with the continued support of its largest vendor, the business will meet its go-forward financial commitments as it works to achieve its financial objectives,” GNC said in a statement.
Chinese consortium IVC is working with the company to ensure a continued supply of products to the company and advance the proposed sale of GNC’s business. IVC is GNC’s largest vendor and joint partner in the business since 2019.
In the meantime, GNC and all of its subsidiaries remain open for business.
Date published: 26 June 2020