Amid declining sales and increased scrutiny on the supplements industry, GNC Holdings is looking to either restructure its business or sell itself.
The Wall Street Journal reports that GNC has started a review of its business that could result in the sale of the company.
“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,” GNC Chairman Michael Hines told the WSJ.
The board’s review comes just days after GNC reported same-store sales declines, and shares dropped 29%, the WSJ notes.
CEO Michael Archbold said at the time that the quality were results were “unacceptable” and the company’s turnaround progress was “insufficient.”
The diet supplements market has come under increased scrutiny from regulators and law enforcement in recent years, with companies accused of producing mislabeled products with inconsistent ingredients, and making questionable health claims. In March 2015, following a probe by the New York Attorney General’s office, GNC agreed to use DNA barcode testing to verify the ingredients in its herbal supplements.
GNC Holdings Considering Selling Itself [The Wall Street Journal]
by Ashlee Kieler via Consumerist
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