Blink Fitness, an affordable gym chain owned by Equinox aimed at making “every body” feel welcome, has filed for Chapter 11 bankruptcy, the company said Monday. The announcement comes as the company struggles to draw throngs of fitness enthusiasts back to its gym in a post-pandemic world.
Blink has long positioned itself as a welcoming and inclusive fitness chain for the masses with a focus on “democratizing fitness for all,” according to the announcement. Chapter 11 bankruptcy was determined to be the “best path forward” for the chain,” Blink president and CEO Guy Harkless said in a statement. The move is aimed at facilitating a sale process in order to “position the business for long-term success.”
Blink members will be able to continue utilizing fitness centers through the sale process, the company said.
The company is also taking steps to “reinvigorate” its most popular gyms. “After evaluating our options, the Board and management team determined that using the court-supervised process to optimize the Company’s footprint and effectuate a sale of 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,” Harkless said.
Blink has also obtained $21 million in new debtor-in-possession financing from current lenders, the company said, which will be used to maintain operations during the sale process.
Blink operates more than 100 locations across New York, New Jersey, Pennsylvania, California, Illinois, Massachusetts, and Texas.
Blink parent company Equinox holdings also operates luxury Equinox gyms across the U.S., where a membership can run as much as $40,000 a year.
Blink competitors 24 Hour Fitness, Gold’s Gym, and Town Sports International have also been forced into bankruptcy, citing COVID-19’s disproportionate impact on operations.
