Blink Fitness says it will close 10 percent of its 101 gyms after filing for Chapter 11 bankruptcy.
The affordable gym chain says the locations it is losing “are not core to Blink’s footprint and are predominantly located outside of the New York City metropolitan area.”
“We regret having to take this action, but we have already alerted members and staff at the affected gyms and are taking steps to minimise the impact on employees and members,” a spokesperson added.
Blink has not confirmed the locations of the gyms it plans to close. It has fitness centers in seven states: New York, New Jersey, Pennsylvania, California, Illinois, Massachusetts and Texas.
Ninety-four of its gyms are corporately owned and the remaining seven are franchises.
Blink, which is owned by luxury gym chain Equinox, has filed for Chapter 11 bankruptcy in the District of Delaware, the company said. Bloomberg on Mondays.
Bosses say they want to continue operating their remaining gyms while they restructure their business.
In his petition, he listed assets and liabilities of between $100 million and $500 million each.
Blink Fitness, owned by luxury gym chain Equinox, has filed for Chapter 11 bankruptcy in the District of Delaware and will now close 10 percent of its 101 gyms.
Blink Fitness CEO Guy Harkless said company leaders had decided that filing for bankruptcy was the best way forward.
“Over the past several months, we have been focused on strengthening Blink’s financial foundation and positioning the business for long-term success,” Harkless said.
“We thank our entire corporate and gym team for their continued dedication to our members, as well as our suppliers and partners for their ongoing support. We look forward to emerging from this process as an even stronger company.”
Despite the move, Blink says it has seen a 40 percent increase in revenue over the past two years.
The gym reportedly has more than 300,000 members.
Blink was founded in 2011 in New York City; according to its website, its memberships range in price from $15 to $40 per month.
The gym’s parent company, Equinox (famous for its much more expensive monthly membership fees), has struggled to recover since the Covid-19 pandemic.
Blink Fitness CEO Guy Harkless said company leaders had decided that filing for bankruptcy was the best way forward.
Gyms and fitness studios were among the businesses hardest hit during the pandemic
Equinox received $1.8 billion to refinance earlier this year.
However, a spokesperson told DailyMail.com that “Equinox has fully recovered from the pandemic and membership levels are at 97 per cent compared to pre-pandemic levels.”
Gyms and fitness studios were among the hardest-hit businesses during the pandemic, hit by closures and then limits on the number of people they could allow in for classes and workouts.
Unlike bars, restaurants and concert venues, no specific federal aid was granted to health clubs.
Twenty-five percent of U.S. health clubs and studios have closed permanently since the pandemic began, according to the National Health & Fitness Alliance, an industry group.
Demand has since returned and home fitness companies, including Peloton, are now in serious trouble as fitness fanatics return to the weight and cardio rooms.
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