I've chosen GNC, Holdings INC.With the tagline of the company being "Live Well"they are a a business focusing on connecting their customer to with a choice of many premium wellness and performance products.These products include protein shakes, performance supplements, weight management supplements, vitamins, health foods and drinks, and a variety of other products focusing on wellness and sport performance.The company is well known by bodybuilders and health gurus alike.

GNC filed for bankruptcy in 2020 after 85 years in business.The reason for the companies filing was due mainly to Covid-19.However due to the emergence of online retail services the company ended up with over 100,00 creditors and an accumulated debt of over $900,000,000 even before Covid-19 shutdowns came into play. Combine both factors and it became impossible for the business to survive.During bankruptcy proceedings the company waspurchased by a china based Pharmaceutical company called Harbin Pharmaceutical group.This allowed them to remerge.However I still think the same factors that forced them into bankruptcy exist today.

According to the most recent 10-Q filed by the company the risks they face are inherently built into the business.These risk factors are only getting worse as consumer behavior changes.First lets take into account that the brick and mortar model is a dying breed.GNC charges a much bigger premium for their products than their online retail competitors.Most people today go online and purchase items at a discounted rate of almost 10-20 percent.This makes it very difficult for the company to compete.This is directly related to consumer behavior.Another risk factor discussed in the 10Q is that the company faces many legal proceedings due to the nature of their business.This includes product liabilities.The supplement business is basically unregulated.Most if not all if the companies products sold in stores are not FDA approved.In general supplements get around this with rules set forth allowing very lenient standards for production of these products.This leads to many lawsuits from their consumers.GNC not only has to face the fact that they are operating in a highly competitive business, but they also have to deal with ever changing government regulations, a fast paced social media and online platform driven worldwhich every day creates perceptions about companies, and products.This is especially true in the wellness industry.Companies and products can be driven to great success, or destroyed over night.

When all of these factors are combined it makes sense that the company is on a economic decline.

Is the post-mortem analysis submitted surprising? Why?

What limitations do you see in the set of tools used in this analysis?

(Please incorporate references)