Blink Fitness gym appears on Flatbush Avenue on August 12, 2024 in the Flatbush neighborhood of Brooklyn, New York City.
Michael M. Santiago | Getty Images
Blink Fitness, a budget gym chain owned by luxury fitness company Equinox Group, has filed for Chapter 11 bankruptcy.
The fitness brand, which has more than 100 locations in the United States, is the latest chain to file for bankruptcy in the wake of the pandemic, following companies such as New York Sports Club, 24 Hour Fitness and Gold's Gym.
The company plans to sell its business, and its assets and liabilities are listed at $100 million and $500 million, respectively. The company plans to continue operating its fitness centers during the sale process, according to a press release.
“Over the past few months, we have focused on strengthening Blink’s financial foundation and positioning the business for long-term success,” Jay Harkless, CEO and president of Blink Fitness, said in a statement. “After evaluating our options, the Board and management team have determined that utilizing the court-supervised process to optimize the company’s footprint and complete the sale of the business is the best path forward.”
This isn’t the first move Equinox has made to improve its finances. The luxury fitness center Equinox, which is part of the group’s portfolio alongside brands like SoulCycle and Pure Yoga, closed a $1.8 billion financing round in March, in part to refinance its $1.2 billion in debt.
The company, which is not publicly traded, said it saw revenue grow 27% in 2023 and that it has seen membership levels return almost entirely to pre-pandemic levels. Equinox has a current pipeline of more than two dozen new locations worldwide.
Earlier this year, Equinox also launched a $40,000 annual gym membership targeting its wealthier member base in an effort to improve its finances as well.
All this comes as a CNBC/Generation Lab Youth & Money survey — which surveyed 1,034 18- to 34-year-olds in the U.S. in August — found that nearly a third of Americans in that age group spend between $1 and $50 a month on exercise and fitness, while 47% reported spending “nothing at all.”
Blink offers memberships ranging from $17 to $39 per month depending on location and competes with other budget gym chains like Planet Fitnesswhich raised its basic membership price to $15 per month last June.
In contrast to Blink, Planet Fitness reported strong membership growth of 7% year over year in the second quarter to 19.7 million total members. Planet Fitness shares recently hit a 52-week high, reaching levels not seen since May 2023.
