Blink Fitness files for Chapter 11 bankruptcy: What to know
FILE - A Blink Fitness location in New York. (Photo by George Chinsee/WWD/Penske Media via Getty Images)
Blink Fitness, a gym operator with more than 100 locations across the U.S., has filed for Chapter 11 bankruptcy protection.
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. 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.
Blink Fitness’ Chapter 11 bankruptcy protection: What to know
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 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. 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.
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.
Equinox is not listed as a debtor in Monday's Chapter 11 documents and is not expected to file its own bankruptcy petition, Shenker notes.
Fitness industry seeks to bounce back from pandemic-era
Blink's bankruptcy filing arrives as much of the fitness industry works to bounce back from pandemic-era losses.
Gyms and workout studios were among the hardest hit during the beginning days of COVID-19, as lockdowns shuttered or significantly limited many operations — including Blink, which was forced to temporarily close all of its gyms at the height of the pandemic, the company's bankruptcy documents note.
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.