Blink Fitness, an affordable gym chain owned by Equinox aimed at making “every body” feel welcome, has filed for Chapter 11 bankruptcy, the company said Monday. The announcement comes as the company struggles to draw throngs of fitness enthusiasts back to its gym in a post-pandemic world.
Blink has long positioned itself as a welcoming and inclusive fitness chain for the masses with a focus on “democratizing fitness for all,” according to the announcement. Chapter 11 bankruptcy was determined to be the “best path forward” for the chain,” Blink president and CEO Guy Harkless said in a statement. The move is aimed at facilitating a sale process in order to “position the business for long-term success.”
Blink members will be able to continue utilizing fitness centers through the sale process, the company said.
The company is also taking steps to “reinvigorate” its most popular gyms. “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,” Harkless said.
Blink has also obtained $21 million in new debtor-in-possession financing from current lenders, the company said, which will be used to maintain operations during the sale process.
Blink operates more than 100 locations across New York, New Jersey, Pennsylvania, California, Illinois, Massachusetts, and Texas.
Blink parent company Equinox holdings also operates luxury Equinox gyms across the U.S., where a membership can run as much as $40,000 a year.
Blink competitors 24 Hour Fitness, Gold’s Gym, and Town Sports International have also been forced into bankruptcy, citing COVID-19’s disproportionate impact on operations.
This article was originally published on cbsnews. Read the original article.
FAQs
What led to Blink Fitness filing for bankruptcy?
Blink Fitness filed for bankruptcy due to a combination of economic pressures from the COVID-19 pandemic, operational challenges, and declining membership. The pandemic severely impacted revenue, while increased competition from at-home fitness solutions and high operational costs further strained the company.
How does Blink Fitness’ bankruptcy affect its members?
Members may experience gym closures and changes in their memberships. While the company has stated it will continue operations during the bankruptcy process, there is uncertainty about the long-term availability of services at all locations.
Will Blink Fitness locations close permanently?
Some Blink Fitness locations have already closed, and more may follow. The future of each location will depend on the outcome of the bankruptcy proceedings and the company’s ability to restructure its finances.
How will this bankruptcy impact Equinox?
Equinox, the parent company of Blink Fitness, may face financial strain due to the bankruptcy. This could lead to a reassessment of its investment in Blink Fitness and potential changes in its overall business strategy.
What are the alternatives for Blink Fitness members?
Members can consider transitioning to other gym chains, many of which offer special deals for those affected by Blink Fitness closures. Alternatively, they may choose to embrace home fitness solutions, such as online workout programs and home gym equipment.