Blink Fitness, the discount gym chain owned by Equinox, filed for Chapter 11 bankruptcy on Monday.
Blink is the latest low-cost gym to file for bankruptcy in the wake of the pandemic, following in the distressed footsteps of 24-Hour Fitness, Gold’s Gym, and Town Sports International.
The company listed between $100 million and $500 million worth of assets and between $100 million and $500 million in debt in its bankruptcy filing in Delaware, according to Bloomberg.
Blink, which operates 60 of its 101 nationwide gyms in New York, plans to continue operating its various locations during the bankruptcy process, according to a press release.
“We are excited to see our members in the gym day in and day out as we reinvigorate our most popular locations and elevate the member experience,” the company said on its bankruptcy website.
Blink recently received $21 million in additional funding and plans to explore a sale during the bankruptcy process, according to the press release.
“A sale of the business is the best path forward for Blink and will help ensure Blink remains the destination for all people seeking an inclusive, community-focused gym,” president and CEO Guy Harkless said in the press release.
Equinox created Blink in 2011 as a cheaper alternative to its famously high-priced gyms. While Equinox memberships could cost as much as $40,000 per year, Blink memberships were as cheap as $15 per month. The gym rapidly expanded throughout New York, opening locations in various boroughs, in upstate counties and on Long Island.
But revenue cratered at many gyms during the COVID-19 pandemic, and not all customers returned after things reopened. Blink claimed its own revenues had increased 40% in the past two fiscal years, but that wasn’t enough to save the company from bankruptcy.
Equinox was not immune to the crunch. Back in March, the company obtained $1.8 billion in financing to restructure various loans.
Chapter 11 bankruptcy allows companies to continue operating while restructuring their business and paying off debts. It is less disastrous than Chapter 7 bankruptcy, in which a company fails completely and sells off its assets to creditors.