Blink Fitness, an affordable gym operator, files for Chapter 11 bankruptcy
abcnews.go.comGym operator Blink Fitness has filed for Chapter 11 bankruptcy protection
NEW YORK — Gym operator Blink Fitness has filed for Chapter 11 bankruptcy protection.
Blink, an Equinox-owned chain with more than 100 locations, said Monday that it was filing for bankruptcy to help facilitate a sale of the business. The New York-based company added that its gyms remain open — with Blink telling its members that it anticipates “limited impact on day-to-day operations” through the process.
Also on Monday, Blink said it received a commitment for $21 million in new financing from existing lenders to help support its ongoing operations, pending court approval. Employees wages and vendor payments are expected to continue without interruption.
Founded in 2011, Blink has long billed itself as an affordable gym “for every body.” Membership plans range from about $15 to $39 per month plus maintenance fees, competitive with rates from larger rivals like Planet Fitness and LA Fitness. Blink is a smaller chain that operates in seven U.S. states: New York, New Jersey, Pennsylvania, California, Illinois, Massachusetts and Texas.
In its Chapter 11 petition, which was filed in Delaware bankruptcy court, Blink listed both assets and liabilities in the $100 million to $500 million range. Total debts for Blink and its affiliates filing for Chapter 11 amount more than $280 million, according to a court affidavit from Chief Restructuring Officer Steven Shenker Monday, which also suggests the debtors may reject leases of certain facilities that are no longer in operation as part of wider cost-cutting efforts.
The company said Monday that it has seen “continuous improvement” in recent financial performance, with revenue increasing by 40% over the last
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