GNC sold to Chinese pharmaceutical group

GNC Holdings Inc., the Pittsburgh-based international health and wellness chain, has been for sold for $770 million to a Chinese pharmaceutical firm in a deal approved Thursday in bankruptcy court in Delaware.

Harbin Pharmaceutical Group Holding Co., an affiliate of GNC’s largest shareholder that owns 40% of the company, also agreed to assume GNC’s liabilities.

The sale price included Harbin paying off $220 million in loans and other debts that GNC had accumulated as it attempted to stay afloat.

A deal to sell the company to Harbin for $760 million was announced on June 23, when GNC filed for Chapter 11 bankruptcy protection from creditors. The judge’s approval of the sale to Harbin preempted any auction that the bankruptcy court would have conducted to see if any other entity would have bid more for the company.

When it announced plans to file for bankruptcy, GNC said it intended to close between 800 and 1,200 stores.

The fate of GNC’s corporate headquarters in Downtown Pittsburgh has not been revealed since the announcement of the sale.

The company was founded in 1935 by David Shakarian, who during the Great Depression established a little health food store called Lackzoom at 418 Wood St. in Downtown Pittsburgh. The store specialized in yogurt and sold other healthy foods such as honey, grains and healthy sandwiches.

The company survived the 1936 St. Patrick’s Day flood, which wiped out both of Shakarian’s stores. Shakarian met the growing demand by opening stores in other states and changed the name of his chain to General Nutrition Centers.

A spokesman for GNC could not be reached for comment Friday.

The agreement filed in bankruptcy court Thursday does not address the fate of the GNC stores which remain open, but places the burden of filing federally required WARN notices for layoffs or closings on Harbin.

Harbin describes itself as being owned by the Chinese government, which prompted U.S. Sen. Marco Rubio, R-Fla., to call for a national security review of the deal prior to its consummation.

Joe Napsha is a Tribune-Review staff writer. You can contact Joe at 724-836-5252, jnapsha@triblive.com or via Twitter .