Blink Fitness will close locations after filing for bankruptcy.
Blink Fitness, a gym chain owned by Equinox, has filed for Chapter 11 bankruptcy, according to a news release shared on Monday.
The gym chain became known for offering members affordable prices on a monthly basis ranging from $15-$45. Blink is primarily located in New York, New Jersey, California, and Texas and has totaled over 400,000 members. The statement shared that the gym might be forced to close multiple locations.
Blink Fitness is not the first gym chain to make this difficult decision. Many U.S. gyms were impacted by the COVID-19 pandemic. Many chains, including 24-Hour Fitness and Gold’s Gym, also filed for bankruptcy. President of Management Vision Rick Caro commented,
“It’s a sign that this is an industry still going through growing pains post-Covid.”
Blink currently has over 100 locations across seven states but that number is expected to go down after this development.
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Blink Fitness Files For Bankruptcy
Blink Fitness CEO Guy Harkless shared a statement explaining that this decision came after mulling over options for what would be better long-term.
“Over the last several months, we have been focused on strengthening Blink’s financial foundation and positioning the business for long-term success.
After evaluating our options, the Board and management team determined that using the court-supervised process to optimize the Company’s footprint and effectuate a sale of the business if the best path forward for Blink.”
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In its filing, Blink Fitness determined its value to be in the $100-$500 million range. The gym chain has faced “liquidity constraints,” according to the release, which were caused from closures during the pandemic.
Blink plans to keep locations open in the meantime and remain focused on finding the best option to deliver long-term success to the business and its members.
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