Blink Fitness announces it will close 10 percent of its 101 gyms after the company filed for Chapter 11 bankruptcy protection.
The affordable gym chain says the locations it’s closing are “non-core to Blink and are primarily located outside the New York City metropolitan area.”
“We regret having to take this measure, but we have already warned the members and staff of the affected gyms and are taking measures to minimize the impact on employees and members,” a spokesperson said.
Blink did not confirm the locations of the gyms slated for closure. It has gyms in seven states: New York, New Jersey, Pennsylvania, California, Illinois, Massachusetts and Texas.
Ninety-four gyms are company-owned, the remaining seven are franchise locations.
Blink, which is owned by luxury gym chain Equinox, has filed for Chapter 11 bankruptcy in the District of Delaware, according to a report. Bloomberg on monday.
Bosses say they want to continue running the remaining gyms while they restructure their business.
The petition listed assets and liabilities ranging from $100 million to $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 the company’s leaders decided filing for bankruptcy was the best option.
“Over the past several months, our focus has been on strengthening Blink’s financial foundation and positioning the company for long-term success,” Harkless said.
“We thank our entire corporate and gym team for their continued dedication to our members, and our suppliers and partners for their continued support. We look forward to emerging from this process as an even stronger company.”
Despite the move, Blink says revenue has increased 40 percent 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, subscription costs range from $15 to $40 per month.
The gym’s parent company, Equinox, known for its much pricier monthly membership fees, struggled to recover from the Covid-19 pandemic.
Blink Fitness CEO Guy Harkless said the company’s leaders decided 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 earlier this year to refinance.
However, a spokesperson told DailyMail.com that ‘Equinox has fully recovered from the pandemic, with membership levels at 97 per cent of pre-pandemic levels.’
Gyms and fitness studios were among the businesses hardest hit during the pandemic, facing lockdowns and restrictions on the number of people they could admit for classes and workouts.
Unlike bars, restaurants and venues, no sector-specific federal aid was provided to gyms.
According to the trade association National Health & Fitness Alliance, 25 percent of U.S. gyms and clubs have been permanently closed since the start of the pandemic.
Demand has since picked up again. Home fitness companies like Peloton are now in dire straits as fitness enthusiasts head back to strength training and cardio rooms.