Blink Fitness location in New York City.
Bill Tompkins | Michael Ochs Archives | Getty Images
Blink Fitness, a budget gym chain owned by luxury fitness company Equinox Group, has filed for Chapter 11 bankruptcy protection.
The low-cost fitness brand, with more than 100 locations in the U.S., is the latest chain to seek bankruptcy in the wake of the pandemic, following companies including New York Sports Club, 24 Hour Fitness and Gold's Gym.
The company plans to sell its business and has listed its assets and liabilities at $100 million and $500 million, respectively. According to a statement, it plans to continue operating its fitness centers during the sale process.
“Over the past several months, we have been focused on strengthening Blink's financial foundation and positioning the company for long-term success,” Guy Harkless, CEO and President of Blink Fitness, said in a statement. “After evaluating our options, the Board of Directors and management team determined that utilizing the court-supervised process to optimize the company's footprint and effectuate the sale of the business is the best path forward.”
This is not the first step Equinox Group has taken to improve the company's finances. The luxury fitness center Equinox, which is part of the group along with brands such as SoulCycle and Pure Yoga, completed a $1.8 billion funding round in March, in part to refinance its $1.2 billion debt.
The privately held company said it saw revenue rise 27% in 2023 and membership levels have nearly returned to pre-pandemic levels. Equinox currently has plans to open more than two dozen new locations around the world.
Earlier this year, Equinox also launched a $40,000 annual gym membership aimed at its wealthier member base in an effort to improve their finances as well.
This all comes after a CNBC/Generation Lab Youth and Money Survey (which polled 1,034 people ages 18 to 34 in the U.S. in August) found that roughly one-third of Americans in that age range spend between $1 and $50 a month on exercise and fitness, while 47% report spending “nothing at all.”
Blink offers memberships ranging from $17 to $39 per month depending on location and competes with other budget gym chains such as Planet Fitnesswhich raised the price of its basic membership to $15 per month in June.
Unlike Blink, Planet Fitness reported strong membership growth of 7% year-over-year in its second quarter to reach a total of 19.7 million members. Planet Fitness stock recently hit a 52-week high, reaching levels not seen since May 2023.
