#3 - GNC Holdings (NYSE:GNC)
While Nordstrom’s and Macy’s may have a longer runway, the same can’t be said for GNC Holdings (NYSE:GNC). The food supplements company got a little reprieve when it managed to extend payment terms with some of its lenders. But with a stock price that was sitting below $1 per share as of this writing, it’s clear that GNC needs to do something to improve its equity situation.
In a statement, GNC said, “The company continues to explore all strategic options available to it to refinance and restructure its debt to drive business continuity and protect the long-term financial interests of the company and the interests of the company’s key stakeholders.”
Some analysts were already forecasting that GNC would have to enter bankruptcy before it restructured its debt. And even though it looks like the company has avoided that outcome for now, it still faces a challenging future. In their most recent earnings report, CEO Ken Martindale said that the company has furloughed 3,800 workers despite 100 stores reopening. Approximately 200 workers at the company headquarters were also laid off through May.
And like many retailers, GNC did not enter this shutdown in a position of strength. The company was already looking to shutter 900 stores, mostly those in malls. However, Martindale is now saying the company would close a “significant number” of more stores than it announced last year.
If the company has one silver lining it’s the fact that gyms are beginning to reopen. If customers begin returning to gyms it may be the impetus for them to get back to taking their food supplements.
About GNC
GNC Holdings, Inc, together with its subsidiaries, operates as a specialty retailer of health, wellness, and performance products. The company operates through three segments: U.S. and Canada, International, and Manufacturing/Wholesale. Its products include proteins, performance supplements, weight management supplements, vitamins, herbs and greens, wellness supplements, health and beauty products, food and drink products, and other general merchandise.
Read More - Current Price
- $0.55
- Consensus Rating
- N/A
- Ratings Breakdown
- 0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- N/A
