Blink Fitness Has Announced Plans for Chapter 11 Bankruptcy – RetailWire

Blink Fitness has initiated a Chapter 11 bankruptcy filing to facilitate a strategic sale of the business and position itself for future growth. The affordable gym brand, known for its inclusive and inviting environment, aims to optimize its operations and footprint through a court-supervised restructuring process.

Despite the bankruptcy filing, Blink plans to maintain its high-quality gym services and continue its commitment to enhancing member experience and community engagement.

“Over the last several months, we have been focused on strengthening Blink’s financial foundation and positioning the business for long-term success. 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.” 

Guy Harkless, President and Chief Executive Officer of Blink Fitness

The company has secured $21 million in new debtor-in-possession financing from existing lenders to support its operations during the restructuring. Blink has also filed motions with the court to ensure the continuation of employee wages, benefits, and vendor payments. With a 40% revenue increase over the past two years, Blink expects to leverage this momentum to achieve its best financial performance in five years and emerge as a stronger entity post-restructuring.

Blink, a subsidiary of the luxury gym chain Equinox, operates mainly in cities and suburbs across New York, New Jersey, California, and Texas, with a few additional locations in Illinois, Pennsylvania, and Massachusetts. With over 400,000 members, according to CNN, Blink provides monthly memberships priced between $15 and $45.

CNN also explained how the pandemic had lasting effects on various retailers in the fitness industry, forcing location closures and insurmountable debt. It noted that as part of the bankruptcy, Blink Fitness “may close an unspecified number of its 101 clubs.”

However, Blink Fitness also recently reported that it achieved a 27% revenue increase in 2023 and noted that membership levels are nearly back to pre-pandemic figures. Additionally, Equinox is planning to open over two dozen new locations worldwide, per CNBC.