PureGym makes $105M bid for Blink Fitness corporate ops; NJ, NY gyms

After voluntarily filing for bankruptcy protection, budget gym chain Blink Fitness has agreed to sell most of its assets to U.K.-based PureGym in a deal worth $105 million.

As part of the agreement announced Sept. 10, Pinnacle US Holdings subsidiary PureGym would acquire corporate operations as well as a “substantial portion of Blink’s locations, with a focus on New York and New Jersey.”

The arrangement is subject to approval from Delaware bankruptcy court and grants PureGym “stalking horse” status. If competing bids come in, a court-supervised auction will take place Oct. 28, according to Blink.

The company has 89 locations, with 58 in New York and 13 in New Jersey.

When Blink filed last month for Chapter 11 relief, the Equinox Group-owned brand said it aimed to use the process to facilitate a sale that will position the business for long-term success.

Blink also said it planned to close 10% of its gyms as part of an effort to right-size its footprint to better align with market needs.

Within New Jersey, the company shuttered two sites: Parsippany and Union.

Encouraging results

A competitor of larger chains, such as Planet Fitness and LA Fitness, Blink offers membership plans ranging from about $15-$45 per month, plus maintenance fees. Outside New Jersey and New York, the 13-year-old brand operates in California, Illinois, Texas and Massachusetts.

The PureGym agreement does not include locations in those states. However, Blink said it “remains encouraged by the performance of these gyms and is actively continuing” to explore a sale.

Throughout the sale process and transition to new ownership, Blink said it will “continue to provide members with the high-quality fitness experience they have come to expect.”

PureGym CEO Humphrey Cobbold remarked, “We have long admired Blink for the premium and affordable fitness experience that the team has delivered, and their commitment to helping members improve their life through fitness. This agreement to be the stalking horse bidder in the court-supervised sale process lays the foundation for PureGym to successfully expand its footprint in the U.S., supporting our purpose-driven mission to inspire a healthier world at an accessible price.”

Fitness for all

In its Chapter 11 filing, Blink said it is still trying to recover from temporarily shutting all clubs during the height of the COVID crisis in 2020, but it hasn’t been able to overcome the loss of revenue and membership.

Blink listed both assets and liabilities of $100 million to $500 million. It also secured a commitment for $21 million in new debtor-in-possession financing from existing lenders to keep the lights on during the bankruptcy process.

The company has noted it has seen “continuous improvement” in recent financial performance, with revenue growing by 40% over the past two years. The company also invested millions of dollars in upgrading its 30 busiest locations with more than 1,700 pieces of new equipment.

Guy Harkless, who came on as president and CEO of Blink in late 2023, said in a statement, “We are pleased to reach this agreement with PureGym, which marks an important step in our sale process … As we have worked this year to reinvigorate our most popular locations and elevate our member experience, we are encouraged by PureGym’s interest in the Blink business model and strategy, and their belief in Blink’s mission to democratize fitness for all.”

He added, “We are confident that Blink’s foundation as an affordable fitness brand will provide a strong base for new ownership to build upon. We know how important fitness is to those who choose to work out at Blink, and we continue to go the extra mile for all of our members. On behalf of the management team, I want to thank the entire Blink Nation for their continued focus, commitment, and hard work that has continued unabated throughout the filing period.”