GNC Holdings Inc (NYSE:GNC) is on the verge of bankruptcy with the vitamin and supplement retailer’s shares facing huge loss in 2017. The share prices of the firm fell by more than 66% in the course of a year and investors began to lose their confidence in the ability of GNC to make transitions with the changing times and sustain as well as progress in the new and more challenging retail space.
And the situation does not seem to be improving a bit in 2018 as GNC is headed for even a rockier road in the months to come. The over-sized debt pile is the biggest issue for the GNC stock at present. Reports indicate that the long-term debt load of the company is massive $1.38 billion.
Moreover, the 2017 third-quarter earnings report of the company revealed that at that time the company had only $40 million in cash on the books. It certainly is an alarming situation as the figures continue to worry the top management of GNC. Also, the free cash flow of the firm for the year is between $190 million and $201 million which certainly are not adequate to fulfill the debt obligations of the company.
To top it all, the due for the long-term debt of GNC will start in just a few months making the current year a sink-or-swim time for the company.
CPERS Raises Holdings IN GNC
As per latest reports, the California Public Employees Retirement System (CPERS) increased its holdings in GNC by 13.2% in the third quarter of 2017. The most recent filing with the Securities & Exchange Commission revealed the details that the fund owned 555,518 shares of the stock of the specialty retailer after it bought an additional 64, 818 shares during the third quarter. After the recent decline, the health and wellness products retailer now has a market cap of $288.52 million.
The company offers products related to health and wellness such as herbal supplements, vitamins, diet products, and sports nutrition products.