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Gym chain Blink Fitness announced Monday that it filed for Chapter 11 bankruptcy protection.
The Chapter 11 filing is meant to help the chain, owned by Equinox Group, “execute an efficient and value-maximizing sale process to optimize its footprint and position the business for long-term success,” according to a news release.
Blink said it will keep its gyms open in the meantime.
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“Over the last several months, we have been focused on strengthening Blink’s financial foundation and positioning the business for long-term success,” CEO Guy Harkless said 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.”
An image of the sign for Blink Fitness as photographed on March 18, 2020, in Hicksville, New York. (Bruce Bennett/Getty Images / Getty Images)
It plans to pay vendors and suppliers “in full under normal terms for goods and services provided on or after the filing date,” Blink said.
Blink’s existing lenders have committed to giving the fitness chain $21 million in new debtor-in-possession financing.