Blink Fitness in New York City.
Bill Tompkins | Michael Ochs Archives | Getty Images
Blink Fitness, the budget fitness chain owned by luxury 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 launch seeking bankruptcy Once the pandemic is over, look out for companies like New York Sports Club, 24 Hour Fitness and Gold’s Gym.
The company plans to sell its business and lists its assets and liabilities at $100 million and $500 million, respectively. The company plans to continue operating its fitness centers during the sale, according to a news release.
“We have spent the past few months 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 evaluating our options, we have The board and management team have determined that utilizing a court-supervised process to optimize the company’s footprint and effect a sale of the business is the best path forward.”
This is not Equinox Group’s first move to improve the company’s financial health. The group’s luxury fitness center Equinox, which joins brands such as SoulCycle and Pure Yoga, did $1.8 billion in revenue Financing round in March, in part to refinance its $1.2 billion in debt.
The company, which is not publicly traded, said revenue grew 27% in 2023 and membership levels were almost fully restored to pre-pandemic levels. Equinox is currently planning more than two dozen new stores around the world.
Earlier this year, Equinox also launched $40,000 annual gym membership Targeting its most affluent member base in an effort to improve their financial health.
All this is as CNBC/Generation Lab Teens and Money Poll An August survey of 1,034 Americans ages 18 to 34 found that about one-third of Americans in that age group spend $1 to $50 a month on exercise and fitness. And 47% said they “didn’t spend any money at all.”
Blink offers monthly memberships ranging from $17 to $39 depending on location, and competes with other budget gym chains, such as planet fitnessthe company raised the price of a basic membership to $15 per month back in June.
Unlike Blink, Planet Fitness reported a 7% year-over-year increase in membership in the second quarter, bringing the total number of members to 19.7 million. Planet Fitness shares recently hit a new 52-week high, reaching levels not seen since May 2023.
