Gym chains take another hit as Blink Fitness files for bankruptcy
The workout chain is owned by the luxury gym company, Equinox
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Your support makes all the difference.Blink Fitness, the affordable workout chain owned by luxury gym Equinox, has voluntarily filed for bankruptcy protection.
Blink filed for bankruptcy in Delaware on Monday. The chain has more than 100 gyms across the country including 60 locations in New York.
The fitness chain promotes inclusion, touting itself as a gym for “every body” and offering affordable memberships starting at $39 per month in New York. By comparison, monthly memberships at its umbrella company, Equinox, start at around $300 in New York.
“Over the last several months, we have been focused on strengthening Blink’s financial foundation and positioning the business for long-term success,” said Guy Harkless, president and CEO of Blink Fitness.
Harkless added that selling the business “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 joins a host of gym chains that have been forced into bankruptcy since the pandemic. In April, American Home Fitness filed for bankruptcy, citing a decrease in attendance post-pandemic.
In May 2020, Gold’s Gym filed for bankruptcy, and one month later, 24 Hour Fitness filed for Chapter 11 bankruptcy and closed more than 100 facilities.
Blink customers will be able to use the gyms throughout the sale process, according to the company. Blink said it had received a commitment of $21m in financing from current lenders, and that financing will be used to support ongoing operations, once approved by the court.
Court filings show that the company listed both assets and liabilities, both ranging from $100m- $500m.
The news comes despite the company’s recent financial success. Blink said that its revenue increased by nearly 40 percent over the past two years.
Blink’s news comes months after its owner Equinox received $1.8 billion to refinance its debt in March, according to a company statement. That money will also be used for “corporate purposes and growth including new clubs.”
Equinox said it had seen a 27 percent increase in revenue in 2023 and record-high “member engagement”.
Harvey Spevak, executive chair and managing partner of Equinox Group said in a statement at the time: “We are seeing record performance in revenue growth and member engagement, which demonstrates our position as the global leader in high performance luxury lifestyle.”
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