Blink Fitness has voluntarily filed for protection under Chapter 11 of the U.S. Bankruptcy Code in the District of Delaware, and is exploring a sale.
According to Blink, the move is a strategic decision to execute an efficient and value-maximizing sale process to optimize its footprint and position the business for long-term success.
Blink boasts more than 100 locations across the U.S., including New York, New Jersey, Pennsylvania, California, Illinois, Massachusetts and Texas. The company has reported revenue increasing by nearly 40% over the last two years.
“Over the last several months, we have been focused on strengthening Blink’s financial foundation and positioning the business for long-term success,” said Guy Harkless, the president and CEO of Blink Fitness, in a statement. “After evaluating our options, the board and management team determined that using the court-supervised process to optimize the company’s footprint and effectuate a sale of the business is the best path forward for Blink and will help ensure Blink remains the destination for all people seeking an inclusive, community-focused gym. We thank our entire corporate and gym team for their continued dedication to our members, as well as our vendors and partners for their ongoing support. We look forward to emerging from this process as an even stronger business.”
The company will continue operating as it works through the Chapter 11 process. In connection with the court-supervised process, Blink stated the company has received a commitment of $21 million in new debtor-in-possession financing from its existing lenders. Once approved by the court, this new financing, combined with cash generated from the company’s ongoing operations, will support the business during this process.
According to Blink Fitness, the company has filed certain customary motions with the court seeking approval to continue to support its operations during the court-supervised process, including paying employee wages and benefits without interruption. They intend to pay vendors and suppliers in full under normal terms for goods and services provided on or after the filing date.
