A contentious discussion concerning the well-known network of fitness centers Planet Fitness has been sparked by recent occurrences. A disgruntled member’s video went viral and sparked the scandal, which has had a big effect on the company’s stock price.
A transgender woman was seen in the women’s locker room at a Fairbanks fitness club. The woman in Alaska posted the image online and criticized the gym for allegedly letting “men” into a section meant for cisgender women. The picture, which showed the transgender woman utilizing the locker room facilities, sparked a lot of discussion and anxiety.
The woman who shared the photo had her membership at the local Planet Fitness revoked, and no action was done against the transgender person. The backlash was immediate. The business adamantly defended its gender identity rights policy, stating that people are free to utilize these areas in accordance with their self-identified gender. It did, however, issue a warning that abusing this regulation could lead to the cancellation of membership.
Numerous people responded to the incident, particularly in conservative groups, and calls for a national boycott of the fitness business resulted. As demonstrated by the notable decline in the value of their stock, Planet Fitness suffered a real setback as a result of this criticism. The company’s market capitalization dropped by about $400 million in just 12 days as a result of the shares’ sharp decline from $66 to roughly $56, or $5.3 billion to roughly $4.9 billion in just 5 days.
This episode emphasizes the larger social difficulties and financial hazards that companies encounter when handling touchy subjects like rights and gender identity in public areas. The firmness with which Planet Fitness adheres to its inclusion policy is evidence of the intricate relationship that exists in the modern world between corporate conduct and social norms.
