Blink, a popular gym known for its affordable memberships, is filing for bankruptcy. The gym was founded in New York over a decade ago and became popular nationwide as it offered low-price memberships ranging from $15 to $40 per month. The Covid-19 pandemic has crippled several gyms. Many of them filed for bankruptcy. Blink’s parent Equinox struggled to rebuild itself after the pandemic and has filed for bankruptcy.
The National Health & Fitness Alliance, an industry trade group, has said that 25 percent of the health clubs and studios in the US have been shuttered post-pandemic. This amounts to about 10,000 gyms across the nation. Some large gym chains that have filed for bankruptcy include 24 Hour Fitness and Gold’s Gym. Now, Blink is also looking at restructuring.
According to senior executives, Blink cannot cope with huge losses and considers Chapter 11 filing for bankruptcy the best way forward.
Earlier in 2024, parent Equinox received $1.8 billion in refinancing. Blink has increased its revenue by 40 percent in the past two years.
According to its website, Blink has more than 300,000 members. Depending on the plan, membership charges vary from $15 to $40 a month. Blink operates 101 gyms across the US.
Despite a seemingly good recovery, strong membership, and an influx of funds, the gym chain filed for Chapter 11 bankruptcy on Monday in the District of Delaware. In its filing, it listed its assets and liabilities in the range of $100 million to $500 million each.
The gym and fitness industry saw a slow recovery post-pandemic. The downturn in the economy that followed decreased discretionary spending across several retail industries, including the health and fitness industry, as reported earlier by CWEB.
The industry is also facing additional challenges with the rise of GLP-1 weight loss drug use in the US and across the world. These drugs with brand names such as Ozempic have also led to easier weight loss for those who prefer not to sweat it out in gyms.
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