Blink Fitness files bankruptcy
Gym operator Blink Fitness has filed for Chapter 11 bankruptcy protection. Blink, an Equinox-owned chain with more than 100 locations, says it’s filing for bankruptcy to help facilitate a sale of the business. The New York-based company added that it’s gyms remain open and anticipates “limited impact on day-to-day operations” through the process.
NEW YORK – Blink Fitness, the New York-based gym operator company with 100 locations across the U.S., has filed for Chapter 11 bankruptcy protection.
The chain has 60 locations in New York alone and more than half of them are listed in the filing.
Blink, a chain owned by the luxury fitness company Equinox Group, said on Monday that it was filing for bankruptcy to help facilitate a sale of the business.
NEW YORK, NEW YORK – AUGUST 12: A sign advertising a Blink Fitness gym is seen on Flatbush Avenue on August 12, 2024 in New York City. Blink Fitness, an affordable gym operator that is owned by Equinox, has filed for Chapter 11 bankruptcy protection.
The company added that its gyms remain open —telling its members that it anticipates “limited impact on day-to-day operations” through the process.
Blink also 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.
List of New York Blink Fitness gyms at risk for closing
Blink has long billed itself as an affordable gym “for every body” and was founded in 2011.
Membership plans range from about $15 to $39 per month plus maintenance fees, competitive with rates from larger rivals like Planet Fitness and LA Fitness.
Blink operates in seven U.S. states: New York, New Jersey, Pennsylvania, California, Illinois, Massachusetts and Texas.
Here is a list of New York locations that are listed in the bankruptcy filing:
- Blink 116th Street
- Blink 125 Park
- Blink 125th Street
- Blink 2374 Grand Concourse
- Blink 2465 Jerome Avenue
- Blink 3779 Nostrand Avenue
- Blink 56-02 Roosevelt Avenue
- Blink 600 Third Avenue
- Blink 78-14 Roosevelt Avenue
- Blink 833 Flatbush Avenue
- Blink 98th Street
- Blink Eighth Avenue
- Blink Farmers Boulevard
- Blink Flatlands Avenue
- Blink Fourth Avenue
- Blink Gates
- Blink Hicksville
- Blink Jamaica Avenue
- Blink Jerome Avenue
- Blink Knickerbocker
- Blink Liberty Avenue
- Blink Metropolitan Avenue
- Blink Myrtle Avenue
- Blink Nassau Street
- Blink Riverdale
- Blink Southern Boulevard
- Blink Steinway Street
- Blink Sunset Park
- Blink Utica Avenue
- Blink Valley Stream
- Blink Webster Avenue
- Blink West 8th Street
A consultant for Blink reached out with a statement from the company that reads:
“As part of Blink’s financial restructuring and sale process, we are right-sizing our gym footprint to align with the needs of the markets we serve. We have made the decision to close approximately 10% of our gyms. The gyms that are closing are non-core to Blink’s footprint and predominantly located outside of the New York City metro area. We regret having to take this action but have already alerted the members and staff at the impacted gyms and are taking steps to minimize the impact on employees and members.”
Why did Blink Fitness file for bankruptcy?
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. Total debts for Blink and its affiliates filing for Chapter 11 amount more than $280 million, according to a court affidavit from Chief Restructuring Officer Steven Shenker on Monday, which also suggests the debtors may reject leases of certain facilities that are no longer in operation as part of wider cost-cutting efforts.
The company said on Monday that it has seen “continuous improvement” in recent financial performance, with revenue increasing by 40% over the last two years.
A Blink Fitness gym in New York, US, on Monday, Aug. 12, 2024. Gym chain Blink Fitness, a low-cost offshoot owned by luxury gym chain Equinox, filed for bankruptcy protection, becoming the latest chain to succumb to stiff competition and higher costs
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 multimillion-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.
Owner Equinox Group also has the brands SoulCycle, Pure Yoga and Equinox Fitness Clubs. The membership prices of those clubs are far more expensive than Blink’s rates.