Blink Fitness announced that the U.S. Bankruptcy Court has approved the sale of its corporate operations and New York and New Jersey locations to PureGym. On November 7, 2024, the Court also approved the sale of Blink’s Chicago, Houston and California locations to an affiliate of JTRE Holdings, LLC.
“We are pleased to have reached another milestone in our sale process and look forward to emerging an even stronger business under new ownership that believes in the value of our mission,” said President and CEO of Blink Fitness, Guy Harkless. “We are excited to continue our work to position the business and various gyms for long-term success as we remain focused on providing members with an inclusive, community-focused gym experience.”
Humphrey Cobbold, CEO of PureGym, commented, “We are delighted with the court approval, which sets us well on the way to completion later this year. We have enjoyed working with and getting to know the Blink Fitness team and are looking forward to working with them to deliver a fantastic fitness experience for members.”
“We have long admired Blink’s mission to democratize fitness for all, and we are excited to carry this forward through JTRE’s acquisition,” said CEO Jack Terzi. “Having access to a welcoming environment for physical fitness is important to both our team and the communities we serve. I am delighted that JTRE can be a steward of the Blink mission moving forward.”
Agreement Details
As previously announced on October 31, 2024, PureGym, whose investors include Leonard Green & Partners and KKR, will acquire Blink’s corporate operations and a substantial portion of Blink’s locations, with a focus on New York and New Jersey for $121 million in cash. PureGym also intends to assume certain liabilities.
Blink also agreed with a JTRE Holdings, LLC affiliate, under which JTRE will acquire Blink’s Chicago, Houston and California locations. Blink is collaborating with JTRE Holdings to develop a seamless transition plan for these sites and will keep stakeholders informed on further decisions. The transaction with JTRE does not include franchise locations, which continue to operate as usual. Both transactions are expected to close later this year.
Additional Details
Additional information regarding the company’s court-supervised process is available here. Epiq, the company’s claims agent, is administering court filings and other information related to the proceedings, which can be found here.
Young Conaway Stargatt & Taylor, LLP is representing Blink Fitness as its legal advisor, Moelis & Company as its financial advisor and Portage Point Partners as its restructuring advisor. Steven Shenker serves as the company’s chief restructuring officer.
