Blink Fitness, the low-cost gym chain with over 100 locations across the United States, announced Monday it is entering into Chapter 11 bankruptcy.
The New York-based company said it was entering into the court-supervised restructuring in an attempt to facilitate a sale of the business. Blink announced it has also received a commitment of $21 million in new financing from existing lenders, pending court approval, to help support ongoing business operations as the bankruptcy process moves forward.
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"Over the last several months, we have been focused on strengthening Blink’s financial foundation and positioning the business for long-term success," CEO Guy Harkless said in a statement. "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 is the best path forward for Blink."
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Founded in 2011, Blink has long stood by its low-cost memberships that are competitive with prices offered by rival gym chains like Planet Fitness. However, unlike Planet Fitness, Blink is on the smaller side and operates in just seven states: California, Illinois, Massachusetts, New York, New Jersey, Pennsylvania, and Texas.
Blink is currently owned by the luxury fitness and health club company Equinox Group, which also owns Soul Cycle, Pure Yoga, and Equinox Fitness Clubs.
