Blink Fitness Files for Chapter 11, Initiates Strategic Sale Process
Krissy Vann | Host, All Things Fitness and Wellness
Blink Fitness has filed protection under Chapter 11 of the U.S. Bankruptcy Code in the District of Delaware as part of a strategic move to streamline its operations and optimize its business for long-term success. The company announced it will pursue a value-maximizing sale process while continuing to provide members with the fitness experience they expect.
Despite the bankruptcy filing, Blink Fitness remains committed to its strategic initiatives, which include upgrading its most popular gyms, enhancing member experiences, and strengthening community ties. The company has seen a 40% revenue increase over the past two years and anticipates its best financial performance in half a decade by 2024.
“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,” said Guy Harkless, Blink Fitness’s President and CEO. “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.”
To support operations during the bankruptcy process, Blink secured $21 million in debtor-in-possession financing from existing lenders. This funding, combined with operational cash flow, will help the company maintain business continuity.
Blink has also filed motions to ensure it can continue paying employee wages and benefits, and it intends to pay vendors and suppliers in full under normal terms for goods and services provided after the filing.
For more details on the court-supervised process, stakeholders can visit BlinkFitnessFuture.com or the claims agent’s website at https://dm.epiq11.com/BlinkFitness.
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