Blink Fitness has filed for Chapter 11 bankruptcy after struggling to draw back gym junkies who canceled memberships during the pandemic, the company said on Monday.
The low-price fitness chain — founded in New York City in 2011 — charges between $15 and $40 a month for memberships, according to its website.
Blink — which operates more than 100 locations across New York, New Jersey, Pennsylvania, California, Illinois, Massachusetts and Texas — is owned by Equinox, whose upscale gyms charge upwards of $500 a month for its higher-priced memberships.
Blink’s prices rose to between between $22 and $45 a month at NYC locations following some price hikes over the past few years.
But like many others, Blink fell victim to the pandemic-era gym drought that popularized at-home fitness programs. Consumers grew hooked on free YouTube videos promising abs in just 15 minutes – and gyms have yet to see these customers return in full.
Gyms have been hurt by long-lasting inflation, as consumers have grown more cost-conscious and pulled back on spending.
The company said its revenue grew nearly 40% over the past two years, but it still wasn’t enough to save the chain from bankruptcy.
Blink CEO Guy Harkless said the bankruptcy filing is the first step in facilitating a sale process to “position the business for long-term success.”
The sale will “help ensure Blink remains the destination for all people seeking an inclusive, community-focused gym,” Harkless said in a statement.
The company said its members can continue using its gyms during the sale process.
Blink has received $21 million in new debtor-in-possession financing from its existing lenders which will be used to maintain operations during the sale process, the company said.
Earlier this year, Equinox Holdings received about $2 billion in capital to refinance maturing loans and support its growth strategy as worries grew over its $1.2 billion worth of loans and weak liquidity, Bloomberg reported in March.
Blink is not alone. Rivals 24 Hour Fitness, Gold’s Gym and Town Sports International all filed for bankruptcy in 2020.
Blink’s parent company has about 100 Equinox locations worldwide.
Equinox locations offer members cardio and strength equipment, barre and pilates classes, Kiehl’s products in the showers and a steam room.
Equinox Holdings is owned by a group of investors, including Executive Chairman Harvey Spevak.
The company “remains committed to its recently announced strategic initiatives to reinvigorate its most popular gyms, elevate its member experience and deepen its community connections, with a continued focus on democratizing fitness for all,” it said in a statement.
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