In the past few years, how people see their expenses has completely changed, especially when exercising. For one particular gym, this struggle has taken its toll in more ways than one. With many gyms facing closures and financial distress after Covid, a popular American gym chain is following in the footsteps of many major retailers and gyms.
Known as “the world’s trusted fitness authority,” this gym grew from a single location into a global brand with nearly 700 gyms worldwide, including both company-owned and franchised locations. Are you going to have to say goodbye to your favorite gym?
All About Gold’s Gym
Founded in 1965 by Joe Gold in Venice, California, Gold’s Gym has been a prominent name in the fitness industry for over five decades. This gym was created to serve Joe Gold’s weightlifting circle. It started in a modest cinder-block building equipped with homemade exercise machines crafted from scrap metal. It quickly became a hub for legendary bodybuilders such as Arnold Schwarzenegger, Lou Ferrigno, and Dave Draper, earning the nickname “the Mecca of bodybuilding.”
Over the decades, Gold’s Gym expanded from one location to nearly 700 gyms worldwide, spreading its influence across the United States and more than 20 countries. The brand evolved into various fitness offerings beyond bodybuilding, embracing group classes and catering to a broader fitness community.
How COVID-19 Impacted the Industry
The COVID-19 pandemic had a major impact on Gold’s Gym, forcing the company to temporarily close all of its company-owned gyms in mid-March 2020 as part of efforts to slow the virus’s spread. This led to a complete halt in membership and royalty revenues from those locations. The economic strain caused by the pandemic compelled Gold’s Gym to permanently close about 30 company-owned gyms across the U.S., including locations in Alabama, St. Louis, and Colorado Springs, though franchise-owned gyms were unaffected.
“While the COVID-19-related closures have caused us to reassess the viability of some company-owned locations and make the difficult decision to permanently close about 30 gyms, we know that we will emerge from this stronger and ready to grow,” read a statement on the company’s X.
Permanent Closure of Select Locations
Gold’s Gym permanently closed about 30 company-owned gyms as part of the restructuring. This decision was made to maintain the brand’s long-term strength and viability, focusing on preserving the company’s future potential rather than short-term survival.
Gold’s Gym CEO Adam Zeitsiff acknowledged the tough choice but expressed confidence that the brand will emerge stronger and ready to grow post-pandemic. For members affected by closures, the company has worked to transfer memberships to nearby locations or provide alternative fitness options.
Sudden Closures Shocking Members
Several members of Gold’s Gym in El Paso, Texas, were left stunned and frustrated when two of the gym’s locations suddenly closed without any prior warning or communication. Patrons arrived to find the doors locked and signs citing “unforeseen circumstances” as the reason for the closures, with no emails, social media updates, or direct notifications beforehand.
“So that kind of is a huge shock,” one gym member told KFox14. “What are we supposed to do? Who are we supposed to talk to? I mean, I don’t want to pay for something nobody told us.”
Filing for Chapter 7 Bankruptcy
It’s important to know that these two locations closed without warning and belong to RCJ2 Enterprises, LLC. The company officially filed for Chapter 7 bankruptcy on April 30, 2025, which immediately closed these final El Paso gyms. Unlike the Chapter 11 bankruptcy Gold’s Gym’s parent company filed in 2020 to restructure and continue operations, this Chapter 7 filing by RCJ2 Enterprises signals a complete shutdown of these locations.
“I check my email every morning, and there’s no email and nothing on social media. Nothing to let us know, give us a warning. So, just a total surprise,” said another member.
Reasons Behind Franchisee Bankruptcy
Despite a general increase in membership nationwide, some franchisees have struggled to maintain profitability due to intense competition from boutique fitness studios, digital fitness platforms, and lower-cost gym chains like Planet Fitness. The franchisee’s bankruptcy was attributed to an inability to meet debt payments, showing us exactly how much pressure these gyms are under.
Statement Made by Gold’s Gym
Gold’s Gym addressed the sudden closures of its last two El Paso locations with a statement posted on its official Instagram account. The statement expressed deep gratitude to the community for its support over the years. The statement also provided guidance for members needing to submit claims related to the closures, referencing the ongoing bankruptcy case filed by RCJ2 Enterprises, LLC, the local franchisee.
“Due to unforeseen circumstances, we have made the difficult decision to close our Gold’s Gym locations in El Paso. We are deeply grateful to have been part of this community for so many years and sincerely thank each of you for your support, as well as the incredible team members who made up the Gold’s Gym family.”
Financial Scale of Gold’s Gym During Bankruptcy in 2020
Covid took quite the toll on this gym, forcing them to list their assets and liabilities at approximately $100 million in 2020. The financial strain was mainly due to the prolonged closures and operational disruptions, severely impacting revenue streams. Before turning to bankruptcy, Gold’s Gym permanently closed about 30 company-owned locations to preserve the brand’s long-term viability.
The First Filing for Bankruptcy
On May 4, 2020, Gold’s Gym and its parent company, GGI Holdings, LLC, filed for Chapter 11 bankruptcy protection as the COVID-19 pandemic severely disrupted their operations and revenue streams. This filing allowed the company to continue operating its nearly 700 gyms worldwide while working to restructure its debts and leases, including the permanent closure of about 30 company-owned gyms to maintain the brand’s long-term viability.
This move helped them with the legal framework to negotiate with creditors and landlords, seek court approval to keep paying suppliers and employees, and implement a pre-negotiated plan to emerge from bankruptcy by August 2020.
Landlord Negotiations and Gym Reopenings
They have actively negotiated with landlords to facilitate the reopening and strengthen their company-owned gyms following the pandemic-related closures. These discussions have focused on securing favorable lease terms and support to reduce financial burdens, allowing gyms to resume operations with improved stability. This approach is part of the company’s broader restructuring efforts to emerge from bankruptcy with a healthier footprint.
Recovery and Acquisition by RSG Group
Germany-based RSG Group came to the rescue of Gold’s Gym when it acquired the gym’s assets for approximately $100 million through a court-approved auction. This major European fitness operator, known for brands like McFIT, took ownership with the goal of revitalizing and expanding the iconic American gym chain. Under RSG’s stewardship, Gold’s Gym emerged from bankruptcy with 61 company-owned gyms and over 600 franchise locations, supported by a healthier balance sheet.
Legal Proceedings and Asset Sale
After acquiring Gold’s Gym’s assets at auction in 2020 for nearly $100 million, RSG Group USA discovered that the previous management had failed to disclose a seven-year global licensing deal during the bankruptcy process. This omission led to a three-year legal battle in the U.S. Bankruptcy Court for the Northern District of Texas, resulting in a ruling that awarded RSG Group $5 million plus attorneys’ fees to compensate for damages caused by the failure to disclose.
The parties settled for a total payment of $7.85 million, allowing RSG Group to fully consolidate ownership of the Gold’s Gym intellectual property and move forward with its revitalization plans.
Franchise Locations Not Affected by Bankruptcy
With over 700 gyms worldwide, approximately 90% are franchise-owned, and these independently operated gyms continue their operations without interruption. The bankruptcy filing specifically targets the company-owned gyms. It does not impact the licensing division or any locally owned franchise gyms, ensuring that franchisees worldwide, including those in the U.S., India, and the Philippines, maintain business as usual.
Digital and Licensing Growth Plans
Gold’s Gym is aggressively expanding its digital and licensing growth plans as part of its 2025 strategy to strengthen member engagement and adapt to evolving fitness trends. The brand has significantly enhanced its digital offerings, including introducing advanced technologies such as the Gold’s 3D body scan and the my PATH mobile app, which provide personalized fitness tracking and coaching experiences.
These innovations are complemented by a robust online presence, with improvements like a 65% increase in conversion rates and a streamlined automated booking process that boosts customer interaction and retention. Their global footprint is only growing, and they don’t seem to be backing down anytime soon.
Will More Gyms Be Closing?
While Gold’s Gym has seen some closures in El Paso, the brand, under new ownership, continues to expand and modernize gyms worldwide. The fitness industry remains under pressure due to high operating costs, changing consumer habits, and increased competition from boutique studios and digital fitness platforms. Many gyms struggle to justify expenses like rent, utilities, and equipment maintenance as more people opt for home workouts or outdoor exercise.
Industry data shows that between 2020 and 2022, nearly a quarter of gyms in the U.S. closed permanently, and this trend may continue for some brands unable to adapt. That said, Gold’s Gym’s parent company, RSG Group, is actively revitalizing and opening new locations globally, giving us the idea that they don’t have any plans for going anywhere soon.
Consumer Behavior and Market Challenges
Since Covid hit, the fitness industry has taken a complete turn, which isn’t always in favor of gyms. Although gym memberships have reached record highs, consumers, especially Millennials and Gen Z, need more than traditional gym access. They’re looking for personalized, tech-integrated, and community-driven fitness experiences. Competition from boutique studios, lower-cost gyms, and digital alternatives intensifies pressure on traditional gyms to innovate.
Industry-Wide Trends in Gym Closures
It is estimated that around 64.2 million Americans currently have active memberships, showing us that the industry is doing quite well, but is volatile. Still, many gyms are closing due to financial difficulties, rising operating costs, and shifting consumer preferences toward home workouts and digital fitness solutions.
The pandemic accelerated closures, with around 17% of U.S. gyms permanently shutting down. This trend persists as gyms struggle to differentiate themselves amid growing competition from boutique studios and budget chains.
Leadership Response and Future Plans
CEO Adam Zeitsiff emphasized that the first filing in 2020 was necessary to ensure the company’s viability for decades to come, stating that Gold’s Gym was not going out of business but restructuring to emerge stronger and ready to grow.
“Our focus is and always will be on our members around the world, and we look forward to welcoming them back as soon as it is safe for our members, team members, and communities,” Zeitsiff said in 2020. “Gold’s Gym has been the world’s trusted fitness authority for more than 50 years, and we’re absolutely not going anywhere.”
A Resilient Brand Worth Knowing
Despite facing gym closures, bankruptcy, and industry changes, their brand is stronger than ever while adapting and evolving with every challenge that comes their way. This resilience is a testament to the brand’s enduring legacy and its ability to navigate complex legal, financial, and operational hurdles while continuing to inspire fitness enthusiasts worldwide.
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