where once there was 4 there's now just one left.
Gold’s Gym Allentown closes, leaving one Lehigh Valley location remaining
By RYAN KNELLER
THE MORNING CALL |
AUG 05, 2020 AT 9:05 PM
Dave Pollock works out at the former Gold's Gym in Allentown in 2013. The facility, at 2919 Lehigh St., permanently closed on July 17.
Dave Pollock works out at the former Gold's Gym in Allentown in 2013. The facility, at 2919 Lehigh St., permanently closed on July 17. (APRIL BARTHOLOMEW / THE MORNING CALL)
Members of Gold’s Gym Allentown are continuing their fitness journeys elsewhere.
The facility, at 2919 Lehigh St., permanently closed on July 17, according to an e-mail that was sent to members. The closure leaves one remaining Lehigh Valley Gold’s Gym in Whitehall Township.
“While it was difficult to make the decision to close this location, we were unable to come to agreement with our landlord during this unprecedented situation for small business owners,” Carol Deiullis, Gold’s Gym’s chief operating officer, said in the e-mail. “We apologize for any inconvenience that this closure may cause and want you to know that we appreciate your support over our time with you the past 12 years in Allentown.”
Paige Lilly works out at the former Gold's Gym in Allentown in 2016. The facility, at 2919 Lehigh St., permanently closed on July 17.
Paige Lilly works out at the former Gold's Gym in Allentown in 2016. The facility, at 2919 Lehigh St., permanently closed on July 17. (APRIL BARTHOLOMEW / THE MORNING CALL)
The news follows the closures of two other area Gold’s Gym locations in recent years: Gold’s Gym Phillipsburg, which closed in September 2019 at the Phillipsburg Mall; and Gold’s Gym Bethlehem, which closed in December 2017 at the Lehigh Shopping Center on Union Boulevard.
In a letter to Gold’s Gym Bethlehem members, Deiuliis wrote that the Bethlehem gym was unable to negotiate a fair lease agreement with the shopping center and would be forced to close.
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An excerpt from an e-mailed message to Gold’s Gym Phillipsburg members reads as follows:
“As many have seen through the past 5 years we have tried to do everything we can to be successful inside the mall but the landlord has done just about everything he can to make sure that does not happen. Now with the state of the mall in total disrepair, with it being torn down around us, many people in the community thinking the mall is closed already or even would like to see it torn down really is making it impossible to do any type of business and we can no longer keep operating under these conditions.”
According to Deiullis’ recent e-mail to Gold’s Gym Allentown members, the business is ready to help welcome members to Gold’s Gym, Whitehall and ensure that their memberships are transferred to the Whitehall Mall location. The 1259 Whitehall Mall gym, just off Grape Street, is about six miles from the former Allentown facility.
Dave Pollock works out at the former Gold's Gym in Allentown in 2013. The facility, at 2919 Lehigh St., permanently closed on July 17.
Dave Pollock works out at the former Gold's Gym in Allentown in 2013. The facility, at 2919 Lehigh St., permanently closed on July 17. (APRIL BARTHOLOMEW / THE MORNING CALL)
“We value your membership and thank you for your loyalty to the Gold’s Gym brand,” the message reads. “Our corporate office and field staff will be here to help you navigate this change and answer any questions about the automatic membership transfer to Whitehall.”
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According to a July 14 press release, posted on Gold’s Gym’s website, RSG Group GmbH, a European “innovation leader in the fitness and lifestyle sectors,” is set to acquire Gold’s Gym after being selected as the winning bidder in a July 13 court-approved auction process.
With the acquisition, RSG Group will become a “global leader in fitness” with more than 900 locations on six continents, the release states.
Established in 1965 in Venice, California, Gold’s Gym, hit hard by the economic shutdown due to the COVID-19 pandemic, filed voluntary petitions for relief under Chapter 11 on May 4, in an effort to financially restructure the company.
In mid-May, as part of the initial bankruptcy filing, Gold’s Gym announced its plan to emerge from bankruptcy quickly through a pre-negotiated plan from its majority owner, TRT Holdings, Inc. After extensive negotiations with TRT Holdings and its creditors, Gold’s Gym announced that it would implement a court-approved marketing process with TRT Holdings serving as the “stalking horse bidder.”
At the conclusion of the auction, Gold’s Gym announced that, subject to final approval from the bankruptcy court on July 24, RSG Group would be the purchaser of the company and its assets, with an estimated final purchase price of $100 million. Subject to final execution, approval and consummation, Gold’s Gym will emerge from bankruptcy with 61 company-owned gyms and more than 600 franchise-owned gyms, “along with a healthy balance sheet,” according to the release.
“Gold’s Gym is a fitness institution that had a major influence on the industry’s development,” Rainer Schaller, RSG Group’s founder and CEO, said in the release. “It was a huge source of inspiration when I was setting up my first McFIT studio in Würzburg, Germany back in 1997. I am incredibly proud that, in partnership with their current leadership team, we will be able to breathe new life into this iconic brand under the umbrella of the RSG Group.”
