On August 12, 2024, Blink Fitness Gym opened on Flatbush Avenue in the Flatbush neighborhood of Brooklyn, New York City.
Michael M. Santiago | Getty Images
Blink Fitness, the affordable gym chain owned by upscale fitness company Equinox Group, has filed for Chapter 11 bankruptcy protection.
The fitness brand, which has more than 100 centers across the U.S., 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 the business, valuing its assets and liabilities at $100 million and $500 million, respectively, and will continue to operate its fitness centers during the sale process, according to the release.
“Over the past several months, our focus has been on strengthening Blink’s financial foundation and positioning the business for long-term success,” Blink Fitness CEO and president Guy Harkless said in a statement. “After considering our options, the board and management have determined that the best path forward is to utilize a court-supervised process to optimize the scope of our operations and effect a sale of the business.”
This isn’t the first move Equinox Group has made to improve its finances: The luxury fitness center chain, which owns brands like SoulCycle and Pure Yoga, closed a $1.8 billion funding round in March as part of a refinancing of $1.2 billion in debt.
The privately held company said it expects revenue to grow 27% in 2023 and membership numbers have almost fully recovered to pre-pandemic levels. Equinox currently has plans to open more than 20 new locations around the world.
Earlier this year, Equinox also launched a $40,000-a-year gym membership aimed at its most affluent members in an effort to improve its finances.
A CNBC/Generation Lab poll of 1,034 US adults ages 18 to 34 conducted in August on youth and money found that about a third of Americans in that age group spend between $1 and $50 a month on exercise and fitness, while 47% say they don’t spend anything at all.
Blink offers memberships ranging from $17 to $39 per month depending on location, competing with other budget gym chains such as: Planet FitnessIn June, it raised its basic membership fee to $15 per month.
Unlike Blink, Planet Fitness reported strong membership growth in the second quarter, up 7% from the same period a year ago, bringing its total membership to 19.7 million. Planet Fitness shares recently hit a 52-week high, reaching levels not seen since May 2023.
