- Blink Fitness, a budget gym brand under Equinox, filed for Chapter 11 bankruptcy, listing assets and liabilities between $100M and $500M.
- The filing is part of a strategy to sell the business while optimizing its operational footprint, with $21M in new financing secured to support operations during the process.
- Despite financial challenges, Blink reported nearly 40% revenue growth over the past two years and expects its best financial performance in five years.
Blink Fitness, a budget gym brand owned by Equinox (which is part-owned by Related Cos.), has filed for Chapter 11 bankruptcy protection to pursue a strategic sale of its business.
The filing, announced Monday, is a significant move for the company, which operates over 100 locations across seven states, as reported by Bisnow.
The Path Forward
Blink Fitness’ President and CEO, Guy Harkless, emphasized that the bankruptcy filing is a crucial step toward restructuring the company’s operations. The court-supervised process will help optimize Blink’s footprint while ensuring its future as an inclusive, community-focused gym.
According to Bloomberg, Blink Fitness listed its assets and liabilities between $100M–$500M. The company has secured $21M in new debtor-in-possession financing from existing lenders. This funding, pending court approval, combined with cash from operations, is expected to sustain the business during the bankruptcy proceedings.
Company Context
Founded in 2011, Blink Fitness has grown to over 100 locations in states including New York, New Jersey, Pennsylvania, and California. The gym chain offers memberships ranging from $17–$39 per month.
Despite the bankruptcy, Blink reported positive financial trends over the last two years, with revenue up by nearly 40%. The company expects to deliver its best financial performance in the past five years.
However, the brand has faced significant financial pressure, with reports in July 2022 indicating that Blink was dealing with multiple lawsuits from landlords over unpaid rent during the pandemic.
What’s Next
The bankruptcy process is expected to facilitate the eventual sale of the company while ensuring its long-term viability.
Blink Fitness is being advised by Young Conaway Stargatt & Taylor for legal matters and Moelis & Co. for financial strategy. Portage Point Partners is acting as the restructuring advisor, with Steven Shenker serving as the chief restructuring officer.
