Equinox Subsidiary Blink Fitness Files for Chapter 11 Bankruptcy

A Blink Fitness gym is seen in New York City, on Aug. 12, 2024. (Michael M. Santiago/Getty Images)

Blink Fitness, an Equinox-owned chain known for its affordable gym services, announced on Aug. 12 that it has filed for Chapter 11 bankruptcy protection in Delaware.

The decision is part of a strategic plan to position the business for long-term success through a value-maximizing sale process, the company said in the announcement.

The company added that it had been “collectively” taking steps to “improve the business since the pandemic” and that the “value-maximizing sale process” was the best option for the company right now.

In its announcement, Blink emphasized its commitment to maintaining day-to-day operations. Blink assured members in a separate statement that its locations remain open for business.

“We will continue to operate as usual, putting our members and communities at the forefront of every decision we make,” the company said in the statement to members. “As we are operating our business as usual, the majority of our members, should expect no impact on their gym experience, and we look forward to continuing to provide the same mood-boosting experience you have come to expect.”

In line with the restructuring process, Blink said the company had secured a commitment for $21 million in debtor-in-possession financing from existing lenders to support its ongoing operations.

This financing is pending court approval and will ensure that employee wages and vendor payments continue without interruption, the company said.

Blink Fitness was founded in 2011 and has billed itself as an inclusive and affordable gym option with membership plans ranging from $15 to $39 per month—with its pricing model placing it alongside larger rivals such as Planet Fitness and LA Fitness.

The company operates more than 100 locations across seven states, with most of the company’s locations located in New York and a substantial amount of those locations in the New York City area, according to a listing of locations on the company’s website.

The gym also has locations in California, Illinois, Massachusetts, New Jersey, Pennsylvania, and Texas, according to the website.

The company’s recent financial performance has shown signs of improvement, with a 40 percent revenue increase over the last two years, the company said in the announcement.

In 2024, Blink expects to achieve its best financial results in the past five years through strategies such as a multimillion-dollar investment to upgrade 30 of its most-trafficked locations with over 1,700 new pieces of equipment, according to the Associated Press.

In a statement, Guy Harkless, president and CEO of Blink Fitness, said: “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.”

He added that Blink looks “forward to emerging from this process as an even stronger business.”

Gyms and fitness studios faced disruptions due to lockdowns and capacity restrictions during the pandemic. However, the industry has seen some stability and growth, with major fitness chains experiencing increased visits in early 2024 compared to the previous year, according to the Associated Press.

The details of the sale process and potential buyers have not yet been disclosed. Blink Fitness is currently owned by the Equinox Group, which also owns other luxury fitness brands such as SoulCycle, Pure Yoga, and Equinox Fitness Clubs.