Bought in $100M to further reconstruct the brand
The COVID-19 pandemic has caused the economic shutdown all over the world, and now it has hit hard the Gold’s Gym. Selected as the winning bidder, RSG Group, Europe’s innovation leader in the fitness and lifestyle sectors, is set to acquire this iconic gym chain Gold’s Gym to facilitate financial reconstruction.
Gold’s Gym announced that subject to final approval from the bankruptcy court on July 24, 2020, 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 franchisee-owned gyms, along with a healthy balance sheet.
From Venice Beach to a global player
The most well-known fitness chain Gold’s Gym began as a small fitness studio in Venice Beach, California. The brand has developed into a global brand with just under 700 gyms, expanding to six continents with three million members in the last 50 years. In the fitness industry, the brand enjoys cult status and has a global appeal with brand awareness near 96% among gym-goers.
With the acquisition of Gold’s Gym, RSG Group is taking the legacy ahead.
“Our goal is to focus on the core values of Gold’s Gym and find the right balance between preserving its roots and moving the brand forward,” said Rainer Schaller, the RSG Group’s founder and CEO.
Successful diversification strategy
RSG Group has a history of building a global corporation with more than 5,000 employees in 48 countries in over 300 locations. This stems from one single brand, McFIT, whose slogan is “the fitness studio for everyone.” Continually pushing the company to the next level, Schaller has taken a 360-degree approach to build and grow 17 brands across multiple sectors, including fitness, lifestyle, design, and fashion.
In recent years, Gold’s Gym has focused on four different lines of business: managing its own gyms, franchising, driving revenues from its global licensing business and the digital personal training app GOLD’S AMPTM, which was launched in 2017.
Further expansion planned
In addition to the market entry of the RSG Group into Turkey, France and the USA this year, additional growth on six continents is now anticipated with the acquisition of Gold’s Gym.
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