After Planet Fitness was devalued by $400 million in just 5 days due to the transgender issue, what’s next for them?

Planet Fitness, the gym chain giant and largest of its kind, has found itself in hot water. The problem arose when Patricia Silva made a video about meeting a trans woman. in the women’s locker room. The incident occurred at a Planet Fitness location in Fairbanks, Alaska.

However, the Fairbanks gym canceled his membership after he posted his first video. Things snowballed when Silva took to social media to announce the cancellation of her Planet Fitness gym membership. However, the gym chain probably didn’t think it would go so far as to cost them $400 million in market valuation in five days, but it did.

Did Planet Fitness make a hasty decision?

The New Hampshire-based company’s stock valuation was significantly affected after the Patricia Silva incident went viral. Although Silva did not say anything derogatory about the trans woman in his initial video, Planet Fitness did not appreciate Silva’s actions.

Silva discovered his membership had been canceled and made another video of the incident. It was the video that provoked the reaction. Silva explained that she took a photo of the trans woman and said she felt uncomfortable before leaving the gym. However, the gym chain took action against her, citing a violation of gym policies.

A Planet Fitness spokesperson told the National Desk that Silva violated the company’s mobile device policy. The spokesperson also said she violated company rules “no judgement” rules. Since 2015, the gym chain implemented a non-judgment policy so that its members do not feel discriminated against. Each branch has the logo “no reviews” on its walls.

However, these policies and their implementation have been questioned several times in the past. “All members have access to restrooms and locker rooms that correspond to their stated gender identity to the extent permitted by applicable law. states the policy of the gym chain.

Is this turning into Bud-light 2.0?

Patricia Silva’s video and the incident went viral after TikTok’s Libs posted it to a wider audience. “Wow. Planet Fitness has seen its value disappear by $400 million since we broke the story. the page published on March 20. Countless people called for a boycott of the gym chain after the news went viral. #BoycottPlanetFitness seems to have worked.

The incident mirrors what happened with Bud Light in 2023, where then-VP of Marketing Alissa Heinerscheid chose transgender influencer Dylan Mulvaney as her brand ambassador. However, the public outrage that followed cost Bud Light $27 billion in market value. The brand also lost its status as the best-selling beer brand in the United States.

While the financial hemorrhage for Planet Fitness appears to have stalled for now, the #BoycottPlanetFitness continues. However, Planet Fitness is holding its own. “As the home of the Judgment Free Zone, Planet Fitness is committed to creating an inclusive environment” McCall Gosselin, director of corporate affairs, said Fox News.

“Our gender identity nondiscrimination policy states that members and guests may use the gym facilities that best match their sincere, self-reported gender identity.” he added. However, Planet Fitness’s future projections don’t look as dire as Bud Light’s did a year ago.

Will Planet Fitness bounce back?

Planet Fitness stood its ground and avoided commenting on the highly sensitive topic of gender identity. Instead, they claimed the mobile policy violation every time they were faced with questions about Silva’s membership cancellation. According to independent journalists like The Quartering on YouTube, the company is also working to limit the damage on social media.

However, Zacks Equity Research says the giant may not be affected by the incident in the long term. Although shares fell, the company explained why investors should hold on to Planet Fitness stock. The company revealed that Planet Fitness is “focused on strategic partnerships and global expansions. » Currently the company is looking to expand into Spain.

The company reported that only 10% of Spaniards have gym memberships. Planet Fitness therefore hopes to capitalize and stimulate growth in the European market. Although the boycott trend is currently in high gear, the company also reported that the number of its Generation Z members increased in 2023. Zacks Equity Research indicated that these factors could help the company bounce back from here the end of this year. It remains to be seen what happens next. What do you think? Tell us in the comments below.