By Dietrich Knauth
NEW YORK (Reuters) - Blink Fitness, an Equinox-owned chain of about 100 low-cost gyms, filed for bankruptcy on Monday in Delaware seeking to find a buyer for its business.
Blink has about $280 million in debt, and it blamed its bankruptcy on the lingering effects from the COVID-19 pandemic, which forced it to shut its operations for nine months and incur additional debt and deferred rent obligations, according to court filings.
Blink markets itself as an "all-inclusive and inviting" place for everybody to get fit, with membership prices between $15 and $45 per month. More than 65% of the company's 443,000 members are younger than 35 years old, according to court filings.
Blink aims to quickly sell its business in bankruptcy, potentially closing underperforming locations in the process, according to its court filings.
Blink began marketing its business in July 2024, and it has already received substantial interest from potential buyers, Blink chief restructuring officer Steven Shenker wrote in a Monday court filing.
Despite its high debt, Blink has reinvested in 30 of its most popular locations in the first half of 2024, buying new gym equipment, updating its club interiors, and partnering with wellness brands to offer supplemental fitness recovery options. Those efforts have resulted in higher user satisfaction and an increase in revenue, according to Blink.
"Over the last several months, we have been focused on strengthening Blink's financial foundation and positioning the business for long-term success," Blink CEO Guy Harkless said in a statement.
Blink has lined up $21 million in additional financing from its lenders to continue operations and fund its bankruptcy case.
Founded in 2011, the New York-based company has 92 owned locations and 10 franchised locations in New York, New Jersey, Massachusetts, Texas, Illinois, and California. Blink has about 2,000 employees.