…decrease in revenue was the result of a decline in domestic same-store sales as well as a reduction in GNC's domestic base. The company said its store based declined by 192 stores as part of a program to shutter underperforming operations.
Associated Press
November 4, 2004
GNC Postpones Initial Public Offering
GNC Corp. said it postponed an initial public offering that was expected to generate some $300 million, after the nutritional supplement retailer deemed current stock market conditions to be unfavorable.
The company - which operates General Nutritional Centers - said late Tuesday it informed the Securities and Exchange Commission of the postponement. GNC originally announced it would go public in a filing during the summer, but had yet to specify the number of shares it intended to float. However, the company did say it wanted to raise somewhere around $300 million to be used to pay down debt and for other corporate purposes.
The company - which had hoped to use the ticker "GNC" - was being advised by Lehman Brothers and Goldman Sachs, according to a press release. GNC did not elaborate on future plans for the IPO.
Thursday, GNC reported third-quarter consolidated net income of $8.5 million for the third quarter, up from a loss of $547.4 million in the year-ago period. Sales, however, fell to $323.1 million from $362.6 million a year ago.
GNC, which operates more than 5,600 company-owned and franchises stores around the world, said the decrease in revenue was the result of a decline in domestic same-store sales as well as a reduction in GNC's domestic base. The company said its store based declined by 192 stores as part of a program to shutter underperforming operations.
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Risks: U.S. Securities and Exchange Commission, Initial public offering, IPO, Termination of franchisee, mass, Same-store sales drop, United States, 20041104 GNC Postpones
