Current:Home > FinanceBlink Fitness, an affordable gym operator owned by Equinox, files for Chapter 11 bankruptcy-DB Wealth Institute B2 Expert Reviews
Blink Fitness, an affordable gym operator owned by Equinox, files for Chapter 11 bankruptcy
View Date:2024-12-23 20:35:42
NEW YORK (AP) — Gym operator Blink Fitness has filed for Chapter 11 bankruptcy protection.
Blink, an Equinox-owned chain with more than 100 locations, said 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.
Founded in 2011, Blink has long billed itself as an affordable gym “for every body.” Membership plans range from about $15 to $39 per month, 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. On Monday, the company said 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 multi-million 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. 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 prices of those clubs are far more expensive than Blink’s rates.
Blink’s bankruptcy filing arrives as much of the fitness industry works to bounce back pandemic-era losses. Gyms and workout studios from were among the hardest hit during the beginning days of COVID-19, as lockdowns shuttered many operations or significantly limited the number of people such businesses could allow in for workouts.
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.
veryGood! (35)
Related
- Channing Tatum Drops Shirtless Selfie After Zoë Kravitz Breakup
- Travis Kelce Reacts to Halloween Costumes Inspired by Taylor Swift Romance
- Dexter Wade's mom seeks federal probe after he's killed by Mississippi police car, buried without her knowing
- Trying to solve the mystery of big bond yields
- 3 Iraqis tortured at Abu Ghraib win $42M judgement against defense contractor
- 'The Reformatory' is a haunted tale of survival, horrors of humanity and hope
- Fourth Wing TV Show Is Taking Flight Based on The Empyrean Book Series
- Australian police arrest host of lunch that left 3 guests dead from suspected mushroom poisoning
- Flurry of contract deals come as railroads, unions see Trump’s election looming over talks
- See the Photo of Sophie Turner and Aristocrat Peregrine Pearson's Paris PDA
Ranking
- 'Dangerous and unsanitary' conditions at Georgia jail violate Constitution, feds say
- Bracy, Hatcher first Democrats to announce bids for revamped congressional district in Alabama
- New Nike shoe is designed to help toddlers learn how to walk: See the Swoosh 1
- Chaotic and desperate scenes among Afghans returning from Pakistan, say aid agencies
- Just Eat Takeaway sells Grubhub for $650 million, just 3 years after buying the app for $7.3 billion
- LSU and Tulane are getting $22 million to lead group effort to save the Mississippi River Delta
- Chase Young trade is latest blockbuster pulled off by 49ers' John Lynch and Kyle Shanahan
- Amy Robach, T.J. Holmes go 'Instagram official' after cheating scandal with joint podcast
Recommendation
-
Celtics' Jaylen Brown calls Bucks' Giannis Antetokounmpo a 'child' over fake handshake
-
I Bond interest rate hits 5.27% with fixed rate boost: What investors should know
-
Eminem's Daughter Hailie Jade Shares Rare Insight Into Bond With Sibling Stevie
-
Ohio State is No. 1, committee ignores Michigan scandal lead College Football Fix podcast
-
Trump hammered Democrats on transgender issues. Now the party is at odds on a response
-
Heidi Klum Shares How She Really Feels About Daughter Leni Modeling
-
Freeform’s 25 Days of Christmas Schedule Revealed
-
How good is Raiders' head-coaching job? Josh McDaniels' firing puts Las Vegas in spotlight