Blink Fitness, Equinox Group’s low-cost gym chain subsidiary, has reportedly filed for Chapter 11 bankruptcy protection.
Blink Fitness said it had “decided to execute an efficient and value-maximizing sale process to optimize its footprint and position the business for long-term success.” To facilitate the sale process, Blink voluntarily filed for protection under Chapter 11 of the U.S. Bankruptcy Code in the District of Delaware.
Throughout its sale process, Blink said it “intends to continue to provide members with the high-quality fitness experience they have come to expect. The company remains committed to its recently announced strategic initiatives to reinvigorate its most popular gyms, elevate its member experience and deepen its community connections, with a continued focus on democratizing fitness for all.”
Blink stated that it has “demonstrated continuous improvement in its financial performance over the past two years with revenue increasing by nearly 40 percent.” In 2024, the company reported that it expected to “build on this momentum and deliver the best top and bottom line performance over the last five years.”
“Over the last several months, we have been focused on strengthening Blink’s financial foundation and positioning the business for long-term success,” said Guy Harkless, president and CEO of Blink Fitness. “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. We thank our entire corporate and gym team for their continued dedication to our members, as well as our vendors and partners for their ongoing support. We look forward to emerging from this process as an even stronger business.”
In connection with the court-supervised process, Blink has received a commitment of $21 million in new debtor-in-possession financing from its existing lenders. Once the Court approves this latest financing, combined with cash generated from the company’s ongoing operations, it will support the business during this process.
Blink Fitness said it has filed certain customary motions with the Court seeking approval to continue to support its operations during the court-supervised process, including paying employee wages and benefits without interruption. The company intends to fully pay vendors and suppliers under normal terms for goods and services provided on or after the filing date.
The Equinox Group has made similar moves to improve the company’s finances. CNBC is reporting that luxury fitness center Equinox, which falls in the group’s holdings alongside brands such as SoulCycle and Pure Yoga, completed a $1.8 billion funding round in March, in part to refinance its $1.2 billion of debt.
Earlier this year, Equinox launched a $40,000 annual gym membership aimed at its most affluent member base to improve its finances.
CNBC pointed out that this all comes as a CNBC/Generation Lab Youth and Money Poll, which polled 1,034 people ages 18 to 34 in the U.S. in August, showed that roughly one-third of Americans in that age range spend between $1 and $50 a month on exercise and fitness, while 47 percent report spending “nothing at all.”
Additional information regarding the company’s court-supervised process is available at Blink’s restructuring website, BlinkFitnessFuture.com.
