Topline
Blink Fitness, a low-cost fitness chain owned by the luxury gym firm Equinox, filed for Chapter 11 bankruptcy and will explore a sale of its business, the company said Monday, the latest gym to enter bankruptcy in recent years as chains struggle to recover after the Covid pandemic.
Bankruptcy was determined to be the “best path forward” for the fitness chain, Blink’s president and … [+]
Key Facts
Blink estimated its assets between $100 million and $500 million and debts between $100 million and $500 million, according to the company’s bankruptcy filing.
Despite filing for bankruptcy, Blink said in a statement the company has “demonstrated continuous improvement” in its finances over the last two years as revenue has increased by nearly 40%.
Bankruptcy is the “best path forward” for the chain, president and CEO Guy Harkless said, adding a sale process will “position the business for long-term success.”
Blink will take steps to “reinvigorate” its most popular gyms, the company said, including upgrading gym equipment and implementing a training program for personal trainers.
Blink said it obtained $21 million in financing to help maintain operations during the sale process.
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Big Number
101. That’s how many fitness centers Blink operates across the U.S., 60 of which are in New York, according to the bankruptcy filing. The gym says it has over 300,000 members.
Key Background
Founded in 2011, Blink has locations in seven states—including New York, New Jersey, Pennsylvania, California, Illinois, Massachusetts and Texas—with memberships ranging from $15 to $40 per month. Other gyms have filed for bankruptcy since being forced to close locations during the pandemic, including 24 Hour Fitness, Gold’s Gym and Town Sports International. Earlier this year, Equinox reportedly received about $1.8 billion in capital to help refinance loans and support the company’s growth strategy. Equinox reported a 27% increase in revenue last year, with plans to build 25 new locations.