Blink Fitness bankruptcy: Affordable gym chain plans location closures

Affordable gym chain Blink Fitness filed for Chapter 11 bankruptcy on Monday and announced the closure of some of its over 100 locations.

The company said it is facilitating a sale “to optimize its footprint and position the business for long-term success,” according to a press release.

Blink Fitness told Newsweek it plans to close 10% of its locations as part of the sale process.

“The gyms that are closing are non-core to Blink’s footprint and predominantly located outside of the New York City metro area,” a Blink spokesperson said to Newsweek. “We regret having to take this action but have already alerted the members and staff at the impacted gyms and are taking steps to minimize the impact on employees and members.”

The exact locations that will be closing have not been announced yet. The company has locations in California, Massachusetts, New York, New Jersey, Texas, Illinois and Pennsylvania.

Franchised locations will not be affected by the sale, according to the Blink spokesperson. There are currently franchises in Lindenhurst, Liverpool, Farmingdale and Onondaga in New York, Beverly and Medford in Massachusetts and Evanston in Illinois.

“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,” Guy Harkless, President and Chief Executive Officer of Blink Fitness, said in a statement.

“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.”

Blink Fitness said it received $21 million from lenders to assist in continuing operations. It said employee wages and benefits will not be impacted.

The fitness company was founded in 2011 with the goal of being an affordable gym “for every body.” Memberships range in price from $15 to $39 per month.

The petition filed in Delaware states that Blink Fitness has over $280 million in total debts.

Blink Fitness claimed its seen “continuous improvement” over the past two years, including a 40% increase in revenue.

In April, Blink Fitness announced the renovation of 30 highly trafficked locations. The upgrades included over 1,700 new pieces of cardio and strength training equipment and interior updates.

The gym chain is currently owned by Equinox Group, which also owns Soul Cycle and Pure Yoga.

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