After bankrupt gym chain Blink was sold at auction by Planet Fitness, a group of unsecured creditors were trying to derail the sale to a British company, The Post has learned.
Planet Fitness, the largest gym chain in the U.S. with more than 2,000 stores, said it had made an 11th-hour bid to buy Blink, accepting a lower offer from UK-based Pure Gym last week. Sources spoke exclusively to the paper.
Pure Gym, which opened its first three gyms in the U.S. in 2022, last week offered a winning bid of $121 million in an auction for Blink, a British company looking to expand. According to an April press release, the company aims to open up to 300 gyms in the United States over the next five years.
But on Friday, at the end of the deal's 48-hour challenge period, Planet Fitness submitted two larger competing bids. The amount would be $141 million if no pre-merger regulatory filings are required and $153 million if Planet Fitness is required to file.
Blink's debtors filed Monday night in support of Pure Gym's initial offer, saying the sale process “culminated in a highest and best bid with a deep-pocketed strategic buyer.” said a person close to the company.
The proposals will be considered in Delaware Bankruptcy Court on Wednesday.
Planet Fitness did not respond to a request for comment.
Planet Fitness first made a bid to buy Blink and its roughly 60 stores on Oct. 23, after the company filed for Chapter 11 bankruptcy protection in August, people told the Post. .
The company is operating on just 30 days worth of cash, sources said, and concerns that the deal could face long-standing antitrust claims and prevent it from emerging from bankruptcy have resulted in debt The proposal was reportedly rejected by the investors and the investment bank overseeing the auction.
Blink was founded in 2011 in New York City. Memberships at this low-cost gym chain range from $15 to $40 per month, according to its website. Blink is owned by Equinox, an upscale fitness club whose upscale gyms charge membership fees of $500 or more per month.
Following price hikes over the past few years, Blink's prices have increased from $22 to $45 per month at its New York City stores. The company also has locations in New Jersey, Pennsylvania, California, Illinois, Massachusetts and Texas.
But like many others, Brink fell victim to the pandemic-era gym drought that made free at-home fitness videos popular. Jim has yet to see a real return of these consumers, who have been hit hard by persistently high inflation.
Shortly after filing for bankruptcy, the company announced it would close about 10% of its gyms. Blink continued to operate its remaining gyms during the sale process.
