Blink Fitness, Equinox-Owned Affordable Gym, Files for Chapter 11 Bankruptcy

Gym operator Blink Fitness has taken the significant step of filing for Chapter 11 bankruptcy protection.

This decision comes as Blink, which is owned by Equinox and operates over 100 locations, aims to facilitate a sale of the business. Despite the filing, the New York-based company reassured its members that gyms remain operational. Blink expects there to be “limited impact on day-to-day operations” throughout this process.

On the day of the announcement, Blink revealed it had secured a commitment for $21 million in new financing from existing lenders. This funding is intended to support ongoing operations and is subject to court approval. The company has also indicated that employee wages and vendor payments will continue uninterrupted.

Founded in 2011, Blink Fitness markets itself as an affordable gym option catering to “every body.” Membership costs range from approximately $15 to $39 per month, which is competitive against larger rivals such as Planet Fitness and LA Fitness. Blink operates in seven states, including New York, New Jersey, Pennsylvania, California, Illinois, Massachusetts, and Texas.

In its bankruptcy petition filed in Delaware, Blink reported both assets and liabilities in the $100 million to $500 million range. The company reported a strong financial performance, stating it has experienced a 40% increase in revenue over the past two years.

The gym also highlighted recent initiatives aimed at enhancing member experiences at its most frequented locations. This bankruptcy filing comes on the heels of a multi-million dollar investment aimed at upgrading 30 of its busiest gyms, which included the addition of over 1,700 new pieces of equipment.

Guy Harkless, Blink Fitness President and CEO, articulated that the leadership team believes utilizing a court-supervised process to facilitate the sale will be the optimal route for Blink. The goal is to ensure that Blink remains a welcoming and community-focused gym for everyone.

While specifics about the sale remain limited, it is noted that Blink is part of the Equinox Group, which also manages luxury brands such as Soul Cycle, Pure Yoga, and Equinox Fitness Clubs. Membership rates at these premium clubs are significantly higher than those at Blink.

Blink’s bankruptcy filing highlights the ongoing recovery efforts within the fitness industry, which is still adjusting following the impacts of the COVID-19 pandemic. It’s important to note that gyms and workout studios were among the most severely affected when lockdown measures were first instituted, often leading to mandatory closures or strict limits on occupancy.

However, those gyms that have successfully navigated the worst of the crisis are now beginning to stabilize. Recent data from Placer.ai, which analyzes retail and foot traffic, shows that visits to major fitness chains consistently increased week-over-week from January to April of this year compared to the same period in 2023.