Planet Fitness’ worth has dropped by $400 million within a span of five days following the banning of a member who posted a picture of a ‘trans woman’ in the women’s locker room. [1]
Dropping Value
On March 14, the company was valued at $5.3 billion, but by March 19, this value had decreased to $4.9 billion, marking a 13.59 percent drop in share value from the previous month. On Tuesday, the company experienced a 7.8 percent drop in its stock value, starting at $59.44 and hitting a five-month low of $54.80 before showing a slight recovery.
Reason for Decline
Planet Fitness’ refusal to reverse its decision to ban a member who witnessed a ‘trans woman’ shaving in the female locker room earlier this month has led to a decrease in membership.
The Incident
Patricia Silva was barred from the gym in Alaska after she detailed an incident online – where she said she saw a transgender woman in her locker room.
Company’s Response
After facing criticism for the ban, the company emphasized that while certain individuals may be uncomfortable to use shared facilities, ‘this discomfort is not a reason to deny access to the transgender member.’
