Blink Fitness, a gym operator, has filed for Chapter 11 bankruptcy. The more than 100-location chain Blink, which is owned by Equinox, announced on Monday that it was declaring bankruptcy in an effort to aid with the company’s sale.
The New York-based business also stated that its fitness centers are still operational, informing its members that Blink expects a “limited impact on day-to-day operations” as a result of the process.
Additionally on Monday, Blink announced that, subject to court approval, it has secured a pledge for $21 million in fresh funding from current lenders to support its ongoing operations. It is anticipated that vendor payments and employee compensation will continue uninterrupted.
Blink, which opened in 2011, has always positioned itself as an inexpensive gym that is “for every body.”
With maintenance costs added, membership options start at $15 and go up to $39 per month, which is competitive with prices from bigger competitors like Planet Fitness and LA Fitness. Seven states in the United States are home to the smaller chain Blink: New York, New Jersey, Pennsylvania, California, Illinois, Massachusetts, and Texas.
Blink stated in its Chapter 11 petition, filed in Delaware bankruptcy court, that its assets and liabilities fell between $100 million and $500 million.
According to a court affidavit released by Chief Restructuring Officer Steven Shenker on Monday, Blink and its affiliates filed for Chapter 11 on Monday with total debts of over $280 million. The affidavit further states that the debtors may refuse to lease certain facilities that are no longer in operation as part of broader cost-cutting measures.
The business announced on Monday that its recent financial performance has shown “continuous improvement,” with revenue rising by 40% in the previous two years.
Additionally, Blink cited previously disclosed initiatives to improve the member experience in its most well-liked facilities.
The company filed for bankruptcy on Monday, two months after announcing a multimillion-dollar investment that involved installing more than 1,700 new pieces of equipment in 30 of its busiest locations.
The company’s leadership decided 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,” according to a statement released by President and CEO of Blink Fitness Guy Harkless.
Blink did not give many specifics on the sale it is pursuing right away.
The upscale fitness firm Equinox Group, which also owns Soul Cycle, Pure Yoga, and Equinox Fitness Clubs, is presently the owner of the chain. Those clubs charge significantly more dues for membership than Blink does.
Shenker points out that Equinox is not anticipated to file for bankruptcy on its own and is not included as a debtor in the Monday’s Chapter 11 filings.
Read Also: 2025 COLA Revealed: Historic Social Security Boost for Retirees – What You Need to Know!
The news of Blink’s bankruptcy filing comes as the fitness sector is trying to recover from losses sustained during the pandemic.
At the height of the pandemic, lockdowns forced many businesses to close or drastically curtail operations, including Blink, which was forced to temporarily close all of its gyms, according to the company’s bankruptcy documents. Gyms and workout studios were among the hardest hit during those early days of COVID-19.
However, since then, gyms that survived the worst have had some stability.
In comparison to 2023, visits to big fitness chains increased almost every week between January and April of this year, according to new statistics from Placer.ai, a company that measures foot traffic and retail.
