NEW YORK — Gym operator Blink Fitness has filed for Chapter 11 bankruptcy protection.
Blink, an Equinox-owned chain with more than 100 locations, said Monday that it was filing for bankruptcy to help facilitate a sale of the business. The New York-based company added that its gyms remain open — with Blink telling its members that it anticipates “limited impact on day-to-day operations” through the process.
Also on Monday, Blink said it received a commitment for $21 million in new financing from existing lenders to help support its ongoing operations, pending court approval. Employees wages and vendor payments are expected to continue without interruption.
Founded in 2011, Blink has long billed itself as an affordable gym “for every body.” Membership plans range from about $15 to $39 per month, competitive with rates from larger rivals like Planet Fitness and LA Fitness. Blink is a smaller chain that operates in seven U.S. states: New York, New Jersey, Pennsylvania, California, Illinois, Massachusetts and Texas.
In its Chapter 11 petition, which was filed in Delaware bankruptcy court, Blink listed both assets and liabilities in the $100 million to $500 million range. On Monday, the company said it has seen “continuous improvement” in recent financial performance, with revenue increasing by 40% over the last two years.
Blink also pointed to recently-announced efforts to boost member experiences in its most popular gyms. Monday’s bankruptcy filing arrives just months after the company announced a multi-million dollar investment that included upgrading 30 of its most-trafficked locations with more than 1,700 pieces of new equipment.
In a statement, Blink Fitness President and CEO Guy Harkless said that the company’s leadership determined that using a court-supervised process to facilitate a sale “is the best path forward for Blink and will help ensure Blink remains the destination for all people seeking an inclusive, community-focused gym.”
Blink did not immediately provide many details about the sale it’s pursuing. The chain is currently owned by luxury fitness company Equinox Group — whose brands also include Soul Cycle, Pure Yoga and Equinox Fitness Clubs. The membership prices of those clubs are far more expensive than Blink’s rates.
Blink’s bankruptcy filing arrives as much of the fitness industry works to bounce back pandemic-era losses. Gyms and workout studios from were among the hardest hit during the beginning days of COVID-19, as lockdowns shuttered many operations or significantly limited the number of people such businesses could allow in for workouts.
But gyms that made it through the worst have seen some stability since. Visits to major fitness chains were up nearly every week between January and April of this year compared to 2023’s numbers, according to recent data from Placer.ai, which tracks retail and foot traffic.
Blink Fitness, a popular budget-friendly gym chain, has recently announced that it will be filing for Chapter 11 bankruptcy. This news has left many members and fitness enthusiasts wondering about the future of the company and what it means for their memberships.
Blink Fitness, known for its affordable membership rates and clean, modern facilities, has been hit hard by the COVID-19 pandemic. With gyms forced to close their doors for months on end and many people opting to cancel their memberships due to financial constraints, Blink Fitness has seen a significant decrease in revenue.
Filing for Chapter 11 bankruptcy does not necessarily mean that Blink Fitness will be closing its doors for good. In fact, many companies use this process as a way to restructure their debts and come out stronger on the other side. By filing for Chapter 11 bankruptcy, Blink Fitness will have the opportunity to renegotiate its lease agreements, reorganize its debt, and potentially secure new financing to keep the business afloat.
For current members of Blink Fitness, the news of the bankruptcy filing may be concerning. However, it is important to note that Blink Fitness has stated that all memberships will remain valid and that they are committed to providing a safe and clean environment for their members to work out in. Additionally, Blink Fitness has stated that they plan to reopen all of their locations as soon as it is safe to do so.
If you are a member of Blink Fitness and have concerns about your membership or the future of the company, it is recommended that you reach out to their customer service team for more information. They will be able to provide you with updates on the situation and address any questions or concerns you may have.
In conclusion, while the news of Blink Fitness filing for Chapter 11 bankruptcy may be unsettling, it is important to remember that this process is often used as a way for companies to restructure and come out stronger on the other side. Blink Fitness remains committed to providing affordable and accessible fitness options for its members, and they are working hard to ensure that they can continue to do so in the future.
