Affordable gym chain to close 10% of locations across the US
Blink Fitness says it is closing 10 percent of its 101 gyms after filing for Chapter 11 bankruptcy protection. The affordable gym chain says the locations which are losing 'are non-core to Blink's footprint and predominantly located outside the New York City metro area.'
'We regret having to take this action but have already alerted the members and staff at the impacted gyms and are taking steps to minimize the impact on employees and members,' a spokesperson added. Blink has not confirmed the locations of the gyms earmarked for closure. It has fitness centers in seven states: New York, New Jersey , Pennsylvania , California , Illinois , Massachusetts and Texas.
Ninety-four of its gyms are corporate-owned, with the remaining seven franchise locations. Blink, which is owned by luxury gym chain Equinox, filed for Chapter 11 bankruptcy in the District of Delaware , as reported by Bloomberg on Monday. Bosses say they want to continue to operating their remaining gyms while restructuring their business.
It listed assets and liabilities of between $100 million and $500 million each in its petition. Blink Fitness CEO Guy Harkless said the company's leaders had decided filing for bankruptcy was the best way forward.
'Over the last 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 vendors and partners for their ongoing support. We look forward to emerging from this process as an even stronger business.'
Despite the move, Blink says it has seen a 40 percent increase in revenue over the past two years. The gym reportedly has over 300,000 members. Blink was founded in 2011 in New York City; according to their website, their memberships vary in price from $15 to $40 per month.
The gym's parent company Equinox - famous for far more expensive monthly dues - struggled to recover since the Covid-19 pandemic. Equinox received $1.8 billion to refinance earlier this year. A spokesperson told DailyMail.com, however, that 'Equinox is fully recovered from the pandemic as membership levels are at 97 percent compared to pre-pandemic levels.'
Gyms and fitness studios were among the hardest hit businesses during the pandemic, hammered by lockdowns and then limits on the number of people they could allow in for classes and workouts. Unlike bars, restaurants and live venues, there was no industry-specific federal aid given to health clubs.
Twenty-five percent of U.S. health clubs and studios closed permanently since the pandemic began, according to the National Health & Fitness Alliance, an industry group. Demand has since returned - with at home fitness companies including Peloton now in deep trouble as fitness fans head back to weights and cardio rooms.
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