This is a massive problem for GNC going forward. Effective on June 30, 2020, the stock was delisted from the New York Stock Exchange and shifted to the OTC Pink market. A GNC store at Promenade. Recover your password. COVID-19 proved too much for the company to manage outside of Chapter 11. 850008654886. Specifically they took aim at the retailer's proposed debtor-in-possession financing, which exists to keep companies liquid and operating healthily through the court process. It can dilute GNC stock to smithereens. But what lender is going to extend more credit if the GNC stock price is still at $3 in 2019 and the company’s current struggles haven’t diminished? 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But, she said, GNC does not expect that "the reopening of additional stores will generate near-term revenue that comes close to the Company's pre-pandemic in-store revenue.". Find a Store. Previously, the company could reasonably expect to roll over this debt. Discover announcements from companies in your industry. Twitter. Recover your password. As fellow contributor Luke Lango put it, the company’s excessive leverage make GNC stock a ticking time bomb. Not every state agreed, and several employees told Retail Dive they felt unsafe working the retailer's stores amid the pandemic, in part because the company wasn't providing them with sanitation products or social distancing protocols. GNC's footprint is sprawling, with around 2,500 company-owned stores in the U.S. and 132 in Canada, CFO Tricia Tolivar said in a, The recent shifts in retail away from malls and traditional retailers have taken their toll on GNC, which in 2016 carried $1.6 billion in funded debt — a figure it managed to get under $1 billion through a, But GNC's debt load was still heavy for a retailer whose revenue, But the company continued struggled financially. Given that the company’s market cap is currently under $250 million, this is a simply enormous amount of debt – more than four times the company’s remaining equity value. It plans to close up to 20% of its 5,800 retail stores, which amounts to as many as 1,200 locations across the United States. Stocks Register. Welcome! View analysts' price targets for GNC or view top-rated stocks among Wall Street analysts. Novanta Inc. (NASDAQ:NOVT): The Fundamentals Have Changed. Among the vitamins, protein products, supplements, herbs, beauty products, and performance food and drinks are GNC's own branded and proprietary products, which also sell wholesale to Rite Aid, PetSmart, Sam's Club and other retailers. Ben Unglesbee What’s certain is that China is a hot market for vitamins and supplements. Get retail news like this in your inbox daily. Yes, it has been a catastrophic destruction of value for GNC shareholders lately. It's a contrarian's dream. your email. your email. In fact, the opposite is occurring: Short sellers are amping up their bets as GNC stock price shows ever more sickness. China: GNC has made a big move overseas. Stocks Register. The company also apparently tried to sell itself. A high-level overview of GNC Holdings, Inc. (GNC) stock. Investors are piling into stocks of companies in bankruptcy, wagering against a court process that routinely wipes out shareholders. Free independent share market investing advice from The Motley Fool. GNC store, Ypsilanti Twp., MI. COVID-19 proved too much for the company to manage outside of Chapter 11. State Reviewer. Companies such as Herbalife Ltd. (NYSE:HLF) have had great success in China, and GNC could follow in their footsteps. 542573 Vital Performance™ Support muscles with Vital Performance™ Recover Ready to Drink, a combination of all 9 Essential Amino Acids including 5g of BCAAs plus collagen. In part, the group was concerned about how much of GNC's bankruptcy loan rolls up pre-bankruptcy debt by replacing it and, potentially, giving those secured lenders priority treatment through the Chapter 11 process. Floods destroyed Shakarian's first two stores, but he rebuilt, expanded, changed the company's name to "General Nutrition Centers," and eventually the retailer started making its own vitamins and supplements. The company’s $1.1 billion term loan facility matures at this time. At $3.50 per share, is the GNC stock price finally ready to recover? The pandemic in large part led to a sales decline of up to 60% at GNC's brick-and-mortar stores in April and May, according to Tolivar. GNC jumped as much as 71% in New York on Thursday. 1125 N. Charles St, Baltimore, MD 21201. After struggling financially for years, the retailer finally buckled under its debt amid the COVID-19 crisis. Their forecasts range from $0.50 to $0.50. Fitch analysts said in a note this week that they believe that "despite its challenges, GNC has a viable position in the retail marketplace, as a segment leader in the vitamin, mineral and health supplement space with good brand recognition, a sticky customer base, and positive cash flow. Log into your account. Password recovery. 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