Blink Fitness has filed for Chapter 11 bankruptcy protection after struggling to win back gym-goers who canceled their memberships during the pandemic, the company announced Monday.
Founded in New York City in 2011, the low-cost fitness chain charges $15 to $40 per month for membership, according to its website.
Blink, which has more than 100 locations across New York, New Jersey, Pennsylvania, California, Illinois, Massachusetts and Texas, is owned by Equinox, a luxury gym chain whose premium memberships cost more than $500 a month.
Following price hikes over the past few years, Blink’s rates have risen from $22 to $45 per month at its New York stores.
But like many other gyms, Brink’s fell victim to a pandemic-era gym dearth that popularized at-home fitness programs as consumers latched onto free YouTube videos promising they could get abs in just 15 minutes, and gyms have yet to see those customers fully return.
Gyms have been hit by a long period of inflation as consumers become more cost-conscious and cut back on their spending.
The company said revenue had grown nearly 40 percent over the past two years, but that still wasn’t enough to save the chain from bankruptcy.
Brink’s CEO Guy Harkless said the bankruptcy filing was the first step in facilitating a sale process that will “position the business for long-term success.”
Harkless said in a statement that the sale “helps ensure Brink’s remains a destination for everyone looking for an inclusive, community-focused gym.”
The company said members would continue to have access to the gym during the sale process.
Blink has secured a new debtor-in-possession loan of $21 million from existing lenders, which will be used to sustain operations during the sale process, the company said.
Equinox Holdings Inc. raised about $2 billion in capital earlier this year to refinance maturing loans and support its growth strategy amid growing concerns about a $1.2 billion loan and weak liquidity. Bloomberg reported in March..
Blink’s isn’t the only one: rivals 24 Hour Fitness, Gold’s Gym, and Town Sports International also filed for bankruptcy in 2020.
Blink’s parent company has about 100 Equinox locations around the world.
Equinox locations offer members cardio and strength training equipment, barre and Pilates classes, Kiehl’s products in shower rooms and steam rooms.
Equinox Holdings is owned by a group of investors, including board chairman Harvey Spevak.
“We remain focused on our recently announced strategic initiatives to revitalize our most popular gyms, elevate member experiences and deepen connections with our communities, as we continue to democratize fitness for all,” Brink said in a statement.
