According to American law, filing for bankruptcy does not mean complete bankruptcy. It is a kind of self-protection and can continue to maintain normal operation in the process of subsequent debt rectification and completion of sale.

For example, Enterprise A is now insolvent. After applying for bankruptcy protection, Enterprise A has the right to use cash to ensure the normal operation of the enterprise, rather than paying off debts. In this way, it is possible for enterprises to make profits again through operation and turn the corner.

Therefore, "bankruptcy protection" is a protection mechanism for enterprises. Under this mechanism, the operation of enterprises is in a normal state. Just like GNC, American factories have been operating normally, and products are continuously produced and sold all over the world.

The reason why GNC went into bankruptcy protection was largely affected by the epidemic-offline sales plummeted, but the rent and employee salaries were paid as usual. After starting the bankruptcy protection procedure, GNC closed more than 65,438+0,000 offline stores in the United States, most of which were loss-making stores. This saves more cash flow and is conducive to the further smooth development of the business.

In addition, according to the information published on the Internet, in addition to normal production, GNC's innovative research and development is also being carried out step by step.