[Update: This story has been updated as new information was received noting more than 40 people were let go.]
RSG Group GmbH, Berlin, Germany, finalized its $100 million purchase of Gold’s Gym International, Dallas, on Aug. 24. The next day, which was the 55th anniversary of the company’s founding, RSG Group let go Gold’s Gym President and CEO Adam Zeitsiff and more than 40 other executives and team members.
RSG Group notified employees on Aug. 25 that several Gold’s Gym leaders and team members had left the company, but the statement, which was provided to Club Industry by the company, did not identify any of the leaders or how many were let go. However, sources close to the company told Club Industry more than 40 people at all levels were let go.
Zeitsiff posted a message on his LinkedIn page noting his departure from the company. In his post, he said: "We’ve done great work together and I couldn’t be prouder. I will look back on this time with great fondness and can’t wait to see what’s next for the company."
At this time, Club Industry cannot confirm the identity of the other leaders.
Sebastian Schoepe, president of RSG Group North America, has been named as the new Gold’s Gym CEO, according to a Gold’s Gym spokesperson. The spokesperson could not share additional details because information was still being communicated within the Gold’s Gym organization.
RSG Group was the winning bidder on Gold’s Gym International after TRT Holdings, the former owner, filed a Chapter 11 restructuring for Gold’s Gym International in May. Several companies expressed interest in buying Gold’s Gym, and RSG Group’s $100 million bid was the winner. In the bid, RSG Group noted it would keep all employees, and in the announcement of the purchase, Rainer Schaller, RSG Group founder and CEO, said: “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.”
RSG Group is a major player in the fitness business in Europe although none of its fitness brands are franchises. Its most well-known fitness brand is McFIT, a brand with the slogan “the fitness studio for everyone.”
RSG Group also owns the John Reed family (John Reed Fitness Music Club, John Reed Women’s Club, John & Jane’s, The Reed), High5, online workouts Cyberobics, the fitness planner app LOOX, the training experience Master of Enthusiasm, sports nutrition Qi², in-house model agency McFIT Models, Pearl Management, artist management agency Tigerpool that represents fashion label Marcell Von Berlin and street artist Ron Miller, cake brand Steven Baker and The Mirai.
With the purchase of the Gold’s Gym brand, RSG Group has more than 900 gym locations around the world.
Zeitsiff leaves Gold’s Gym after 18 months at the helm as CEO, but he previously had served as CIO at Gold’s Gym for more than two years, stepping away for less than a year for an opportunity at Smoothie King before TRT Holdings asked him to return as CEO in February 2019.
During his original tenure at Gold’s Gym, Zeitsiff helped the company launch its personal training app, Gold’s AMP, which offers coach-led, music-driven indoor and outdoor cardio, bodyweight and stretching workouts for members and non-members.
While CEO, Zeitsiff led the brand through its strongest year of worldwide growth in company history in 2019, a year in which it finalized 22 American franchise agreements and opened 35 locations, the latter of which was a company record. He led the refranchising of more than 30 company-owned clubs. He led the company during the COVID-19 pandemic and temporary club shutdowns plus the permanent closure due to the pandemic of 30 company-owned clubs. In May, the COVID-19 crisis also caused the company to file a Chapter 11 restructuring plan. He led the roll out of a new franchise model and then oversaw the purchase of the brand by RSG Group.