After 13 years of operation, Blink Fitness—the wallet-friendly gym owned by Equinox Holdings—has filed for Chapter 11 bankruptcy.
According to a statement from the company, published this morning, Blink plans to keep its doors open to members while it works toward an eventual sale. The brand has more than 100 locations across the United States, with 60 gyms in New York alone. As a result of the filing, Blink has received $21 million in new financing from its existing lenders to reposition the business.
Blink’s parent company, Equinox Holdings, is best known for its eponymous brand Equinox Fitness Club, which boasts plenty of impressive membership perks and an even more impressive membership fee (access to all clubs worldwide will run you $405 per month).
By comparison, memberships at Blink range between $15 and $45 monthly, making it a more accessible option for gym goers on a budget. Equinox operates a slate of other lifestyle brands, including SoulCycle and Pure Yoga.
Rocky times for the fitness industry
The news of Blink’s bankruptcy comes during an ongoing rocky period for Equinox Holdings—and gyms in general. During the pandemic, plenty of former members turned to at-home workout options, and many gyms have struggled to fully rebound in the years since. Between 2020 and 2021, other fitness centers including 24 Hour Fitness, Gold’s Gym, and Town Sports International also reported bankruptcy.
As recently as this March, Equinox Holdings received $1.8 billion in capital to refinance a hefty backlog of existing debt. That month, Bloomberg reported that S&P Global Ratings “put Equinox’s CCC- rating on watch on for possible downgrade, citing $1.2 billion of loans due [March 8] and weak liquidity despite ‘good trends in membership recovery and positive Ebitda generation’ in the first nine months of 2023.”
Now, it seems, the company is resorting to more drastic steps to turn things around in 2024.
