Popular National Gym Chain Offering $40 Memberships Files for Bankruptcy

Popular national gym chain Blink Fitness has filed for bankruptcy protection.

Blink Fitness, owned by luxury gym chain Equinox, has filed for Chapter 11 bankruptcy in Delaware County, according to a report. Bloomberg on monday.

The company, which operates 101 gyms nationwide, is seeking permission to continue operating while it works out a plan to repay creditors.

In its petition, it listed assets and liabilities of between $100 million and $500 million each.

Blink Fitness CEO Jay Harkless said company leaders decided filing for bankruptcy was the best way forward.

“Over the past few months, we have focused on strengthening Blink’s financial foundation and positioning the business for long-term success,” Harkless said.

“We thank our entire team at the company and the gym for their continued dedication to our members, as well as our vendors and partners for their continued support. We look forward to emerging from this process a stronger company.”

Despite the move, Blink says it has seen revenue increase by 40 percent over the past two years.

The gym is said to have over 300,000 members.

Blink was founded in 2011 in New York City, and according to its website, membership prices range from $15 to $40 per month.

Equinox, the gym's parent company, has struggled to recover since the COVID-19 pandemic, which has led to many gyms going bankrupt.

Blink Fitness CEO Jay Harkless said company leaders decided filing for bankruptcy was the best way forward.

Gyms and fitness studios have been among the hardest hit businesses during the pandemic.

Equinox secured a $1.8 billion refinancing earlier this year.

Gyms and fitness studios have been among the hardest-hit businesses during the pandemic, hit hard by closures and then restrictions on the number of people they can allow into classes and workouts.

Unlike bars, restaurants and live venues, there was no industry-specific federal aid given to health clubs.

About 25% of health clubs and studios in the United States have permanently closed since the pandemic began, according to the National Health and Fitness Alliance, an industry group.