Blink Fitness fails to make gains, files for bankruptcy
Blink Fitness, a gym that offers memberships for as low as $15, announced on Monday that it filed for Chapter 11 bankruptcy.
The budget gym chain is owned but separately operated by Equinox, a luxury gym chain that can charge upwards of $500 a month for its memberships. Blink has nearly $281 million in debt, which it plans to pay by selling off parts of its business.
Blink said plans to continue operating in the meantime. It is one of several gyms to file for bankruptcy since the pandemic, including 24 Hour Fitness and Gold’s Gym.
Blink caters to younger, lower-income gym-goers, with more than 65% of its membership younger than 35 years old, according to court documents. The company said its revenue grew nearly 40% over the past two years, but it still wasn't able to avoid bankruptcy.
According to court filings, Blink experienced a tank in revenue during the pandemic, but even as its numbers rebounded it has struggled to catch up on deferred rent payments and other expenses.
While Blink will now shift to selling off its pieces, its fellow budget gym chain, Planet Fitness, recently reported growing memberships and swelling profits. Planet Fitness, however, has a business model that only works out if its members don't.
Blink said plans to continue operating in the meantime. It is one of several gyms to file for bankruptcy since the pandemic, including 24 Hour Fitness and Gold’s Gym.
Blink caters to younger, lower-income gym-goers, with more than 65% of its membership younger than 35 years old, according to court documents. The company said its revenue grew nearly 40% over the past two years, but it still wasn't able to avoid bankruptcy.
According to court filings, Blink experienced a tank in revenue during the pandemic, but even as its numbers rebounded it has struggled to catch up on deferred rent payments and other expenses.
While Blink will now shift to selling off its pieces, its fellow budget gym chain, Planet Fitness, recently reported growing memberships and swelling profits. Planet Fitness, however, has a business model that only works out if its members don't.
