Gold’s Gym International, Irving, Texas, is set to be acquired by RSG Group GmbH, a fitness brand operator in Europe, according to a media release from RSG Group.
Gold’s Gym International, which filed for Chapter 11 restructuring on May 4, was auctioned off in a court-approved auction process on July 13 for $100 million to RSG Group, which is headquartered in Berlin, Germany. The purchase is subject to final approval from the bankruptcy court. Approval is expected on July 24.
If all goes as planned, Gold’s Gym International will emerge from bankruptcy with 61 company-owned gyms and more than 600 franchise-owned gyms.
Founded in 1997, RSG Group’s most well-known fitness brand is the McFIT brand in Europe. The brand’s slogan is “the fitness studio for everyone.”
RSG Group also owns other brands in the fitness, lifestyle, design and fashion markets.The brands include 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.
The purchase of the Gold’s Gym brand will give RSG Group more than 900 gym locations around the world.
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 negotiations with TRT Holdings and its creditors, Gold’s Gym announced in late May that it would implement a court-approved marketing process with TRT Holdings serving as the “stalking horse bidder.”
Gold’s Gym International will be RSG Group’s first jump into the franchising model for fitness although Rainer Schaller, the RSG Group’s founder and CEO, has been a franchisee in the food retail business for more than 30 years.
“Instead of my original idea of slowly approaching franchising in the fitness sector, we are now diving in headfirst. This is the start of a new era for the RSG Group and I’m really looking forward to its success,” Schaller said in the announcement.
Schaller also said that Gold’s Gym is a fitness institution that had a major influence on the industry’s development.
“It was a huge source of inspiration when I was setting up my first McFIT studio in Würzburg, Germany back in 1997,” he 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.”
Adam Zeitsiff, president and CEO of Gold’s Gym International, said that he and his team are excited to work with RSG.
“The RSG Group with nearly 25 years of owner-managed expertise in the fitness sector, lives and breathes fitness and that is reflected in everything they do and how they do it,” Zeitsiff said in the release. “For us, this acquisition will open up brand-new opportunities to lead Gold’s Gym into a strong future together.”
Schaller said that his goal will be to focus on the core values of Gold’s Gym and find the right balance between preserving its roots and moving the brand forward.