Popular national gym chain offering $40 memberships files for bankruptcy

Popular, affordable 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 the District of Delaware, according to a report. Bloomberg on monday.

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

The petition listed assets and liabilities ranging from $100 million to $500 million each.

Blink Fitness CEO Guy Harkless said the company’s leaders decided filing for bankruptcy was the best option.

“Over the past several months, our focus has been on strengthening Blink’s financial foundation and positioning the company for long-term success,” Harkless said.

“We thank our entire corporate and gym team for their continued dedication to our members, and our suppliers and partners for their continued support. We look forward to emerging from this process as an even stronger company.”

Despite the move, Blink says revenue has increased 40 percent over the past two years.

The gym’s parent company, Equinox, has struggled to recover from the Covid-19 pandemic, which has pushed several gyms out of business.

Equinox received $1.8 billion earlier this year to refinance.

Gyms and fitness studios were among the businesses hardest hit during the pandemic, facing lockdowns and restrictions on the number of people they could admit for classes and workouts.

Unlike bars, restaurants and venues, no sector-specific federal aid was provided to gyms.

According to the trade association National Health & Fitness Alliance, 25 percent of U.S. gyms and clubs have been permanently closed since the start of the pandemic.