Copyright The Street
For many people, the gym is more than just a place to work out; it’s a sanctuary. Whether they relieve stress, offer an escape from life challenges, or simply support good health, gyms serve as personal therapy centers for millions. So when that familiar space suddenly disappears, finding a new one that feels comfortable and adjusting to a different community can be discouraging. For over 60 years, Gold’s Gym has served as a cornerstone of fitness culture. Since opening its first location in 1965 in Venice Beach, California, it has been known as the mecca of bodybuilding, attracting legends such as Arnold Schwarzenegger, Lou Ferrigno, and Franco Columbu. However, even the most iconic chains are not immune to financial troubles. Gold’s Gym filed for Chapter 11 bankruptcy in May 2020 to restructure its debt, citing Covid shutdowns as a primary cause. This led to the permanent closure of 30 company-owned gyms and the temporary shutdown of around 700 locations, according to a company statement. Two months later, German fitness company RSG Group acquired Gold’s Gym out of bankruptcy through an auction for $100 million, taking ownership of 61 company-owned gyms and over 600 franchises worldwide, as declared in a company statement. Gold’s Gym sells 23 locations While the bankruptcy filing may have rattled thousands of loyal fans, Gold’s Gym has made another surprising decision that will forever change an entire region of its business. The company has sold 23 Southern California locations to EōS Fitness, but will maintain ownership of its original Venice Beach flagship. In an email to members, Gold’s Gym stated the decision was not easy and doesn’t mark the end of its legacy in its home state; instead, it’s a strategic move to open new franchisees in the area. “This wasn’t a decision we made lightly,” read a Gold’s Gym email. “We’ve spent years building something we’re deeply proud of, and we wanted to ensure that whoever took the reins would honor that legacy and continue to care for our members the way we always have.” Following the Gold’s Gym email, members received an email from EōS Fitness informing them that the transition had taken place on October 29 and that their active memberships would be transferred seamlessly, ensuring uninterrupted gym access. The acquisition brings more than 1,000 Gold’s Gym employees under EōS Fitness management, maintaining the existing teams at each location. Gold’s Gym locations closing Beverly Center Hollywood Long Beach Santa Barbara Gold’s Gym returns to Southern California after 36 years Following the release of the location acquisitions, Gold’s Gym revealed plans to return to the Southern California market for the first time in 36 years, through new franchise developments. “Gold’s Gym has always been a leader in health and fitness, and this decision marks a huge step forward for the brand, our franchisees and our members,” said Co-CEO Danny Waggoner in a press release. “In building on our foundation of strength and performance through elevated experiences, new innovations, and our continued commitment to our community, we are pushing the brand into a new era while remaining true to our heritage.” More Closures: Popular local bakery chain closing all stores next month 93-year-old grocery, supermarket chain keeps closing stores Victoria’s Secret rival closes, stops shipping, no bankruptcy However, Southern California isn’t the only market where Gold’s Gym wants to expand. Over the past 18 months, Gold’s Gym has opened a new location in Austin, Texas, and launched more than 20 new gyms across the U.S., Canada, Spain, and France in partnership with franchisees. Gold’s Gym also has plans to open 40 new locations globally over the next year and has sealed a development agreement for 60 new gyms in Brazil. EōS Fitness’ growth strategy Founded in 2015, EōS Fitness is a Dallas-based gym chain operating 208 locations across seven states, with approximately 100 gyms in the planning stages or set to open soon. The acquisitions are part of EōS Fitness’ expansion strategy to open 250 gyms by 2030. Obtaining locations from a renowned brand like Gold’s Gym is a savvy way for EōS Fitness to retain its current members while boosting brand awareness in new markets. “While this acquisition accelerates our expansion in a highly competitive real estate market, we are especially grateful to Angel and Willy Banos, the founders of this Southern California franchise, for their vision and diligence in building these gyms and maintaining such high standards of operation over the last three decades,” said EōS Fitness CEO Rich Drengberg in a Press Release. “It’s this foundation that is one of the ways we can extend the premium fitness experience EōS Fitness is known for to a broader audience while enhancing access for existing members.” Southern California has become EōS Fitness’ largest market, with 46 locations currently open and a target of 50 gyms by the end of 2025. The effects of Covid shutdowns on gyms Between March 2020 and December 2021, 25% of all health and fitness facilities and 30% of studios permanently closed, resulting in the elimination of more than 1.5 million industry jobs, according to the Health & Fitness Association’s data. “After 10 years of consistent revenue growth, the fitness industry lost $29.2 billion — with a ‘B’ — in revenue from March 2020 through June 2021. That’s a 52% decline from 2019, through no fault of their own,” said Health & Fitness Association. “There were simply no viable options for gyms to sustain any revenue while being shut down for multiple months.” The temporary shutdowns led many fitness enthusiasts to drastically change their workout routines and reshape habits across the industry, trading traditional gym sessions for at-home workouts, outdoor training, and garage gyms. “If I have the choice, I would rather dance and work out outdoors or in my open-air garage,” Public Health Executive Christine Plepys told Consumers’ Checkbook in 2022. “Right now, I have no desire to be inside with other people who are breathing heavily.” Gyms that have filed for Chapter 11 bankruptcy 24 Hour Fitness: Filed for Chapter 11 bankruptcy in June 2020, permanently closing 144 locations. Source: Kroll Town Sports International: The parent company of New York Sports Club and Boston Sports Club filed for Chapter 11 bankruptcy in September 2020, permanently closing over 100 locations. Source: Epiq 11 Blink Fitness: Filed for Chapter 11 bankruptcy in August 2024, planning to close 10% of its locations. Source: Fox 5 New York
