Affordable gym operator Blink Fitness files for Chapter 11 bankruptcy protection
NEW YORK — Gym operator Blink Fitness has submitted a petition for Chapter 11 bankruptcy protection.
Blink, an Equinox-owned chain with over 100 locations, announced on Monday that it was initiating bankruptcy proceedings to facilitate the sale of the business. The New York-based company confirmed that its gyms are still operational — with Blink reassuring its members that it foresees “minimal impact on daily operations” during the process.
Also on Monday, Blink revealed that it secured a commitment for $21 million in fresh funding from current lenders to sustain its ongoing activities, subject to court approval. Salaries for employees and payments to suppliers will continue without disruption.
Established in 2011, Blink has always marketed itself as an affordable gym “for every body.” Membership options vary from approximately $15 to $39 per month in addition to maintenance charges, which are competitive with rates offered by larger competitors like Planet Fitness and LA Fitness. Blink operates in seven U.S. states as a smaller chain: New York, New Jersey, Pennsylvania, California, Illinois, Massachusetts, and Texas.
In its Chapter 11 application filed in Delaware bankruptcy court, Blink disclosed assets and liabilities in the $100 million to $500 million range. The total debts for Blink and its associated entities undergoing Chapter 11 exceed $280 million, as per a court affidavit submitted by Chief Restructuring Officer Steven Shenker on Monday, which also indicates that the debtors may refuse leases for certain facilities that are no longer operational as part of broader cost-cutting measures.
The company reported on Monday that it has witnessed “steady improvement” in its recent financial performance, with revenue climbing by 40% in the last two years.
Blink also highlighted recent initiatives to enhance member experiences at its most popular gyms. The bankruptcy filing on Monday comes shortly after the company publicized a multimillion-dollar investment to upgrade 30 of its busiest locations with over 1,700 new pieces of equipment.
In a statement, Blink Fitness President and CEO Guy Harkless stated that the company’s leadership determined that utilizing a court-supervised process to facilitate a sale “is the optimal course of action for Blink and will help guarantee that Blink remains the preferred choice for all individuals seeking an inclusive, community-oriented gym.”
Blink did not immediately provide many details about the sale it’s pursuing. The chain is currently owned by luxury fitness company Equinox Group — whose brands also include Soul Cycle, Pure Yoga, and Equinox Fitness Clubs. The membership fees for those clubs are significantly higher than Blink’s rates.
Equinox is not mentioned as a debtor in Monday’s Chapter 11 documents and is not expected to file for bankruptcy, according to Shenker.
Blink’s bankruptcy filing comes as the fitness industry as a whole strives to recover from losses incurred during the pandemic. Gyms and fitness studios were among the hardest hit in the early days of COVID-19, as restrictions closed down or severely limited operations — including Blink, which had to temporarily shut down all its gyms at the peak of the pandemic, as noted in the company’s bankruptcy paperwork.
However, gyms that weathered the storm have experienced some stability in recent months. Visits to major fitness chains increased almost every week from January to April this year compared to 2023, according to recent data from Placer.ai, a firm that monitors retail and foot traffic.