GNC has begun a strategic review that could result in the sale of the company and has already led to an agreement to sell 84 corporate-owned stores.
The review is the result of poor quarterly reports and an ongoing slowdown in its vitamin business.
Sales and revenue for the first quarter declined 1.8 percent, same-store sales declined 2.6 percent in company-owned stores and dropped 5.6 percent at domestic franchise locations.
Still, GNC is pursuing a strategy that includes selling and refranchising corporate-owned stores and has agreed to sell 84 such units to Sun Holdings, which operates franchise locations for such brands as Burger King, Popeye's and Golden Corral.
And now GNC is conducting a strategic review of all assets and options, including a sale of the company.
"After careful consideration, including discussions with a range of shareholders, we believe it is an appropriate time to undertake a comprehensive review of the company's strategic and financial alternatives," said Michael Hines, GNC's chairman. "We are in the early stages of a broad review and will take the time we need to thoroughly evaluate our opportunities to achieve the best result for our shareholders, business partners and associates."
"While the review is ongoing, GNC will continue to act with the necessary urgency to deliver improved financial performance by addressing our near-term challenges and continuing to execute our strategic initiatives," Hines said.
"There can be no assurance that this review will result in any specific action, or any assurance as to its outcome or timing," according to a company statement.
In August, GNC announced plans to rebrand itself around health and wellness, removing images of chiseled athletes and replacing them with families and individuals engaged in a healthy lifestyle.
- see this GNC statement
- see this GNC financial release
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