GNC Holdings Inc. got legal permission to sell itself to Chinese sponsor Harbin Pharmaceutical in bankruptcy court despite recent resistance from U.S. political figures, Bloomberg News reported. Bankruptcy Court Judge Karen Owens approved the health and wellness company’s plan to sell its assets to its largest shareholder and original bidder, Harbin Pharmaceutical Group Holding Co., for $770 million. The deal was also supported by GNC’s landlords and creditors, GNC’s lawyers from Latham & Watkins said at a virtual hearing yesterday. “The market has spoken. The Harbin bid was the highest, best bid” that emerged during the marketing process and is “better than any alternative plan,” including liquidation, Latham’s Caroline Reckler said on behalf of the company. The sale also provides $4.5 million to GNC’s unsecured creditors who supported the sale as part of a global settlement with the company. Sen. Marco Rubio (R-Fla.) voiced concerns last week over the company’s plans to sell to Harbin, citing risk of GNC customers’ personal data being exposed to the Chinese government. GNC continues to stand by Harbin’s bid and doesn’t believe there are any legal issues related to the sale, Reckler said in court, noting that “access to consumer data” is protected through quarterly audits that “will not change in any way.” The deal also calls for the assumption of 1,400 retail locations, saving thousands of jobs while closing under-performing storefronts, GNC’s lawyers said.
