Blink Fitness files for bankruptcy and may close some gyms
Blink Fitness, the low-price gym chain with monthly memberships ranging from $15 to $45, filed for bankruptcy Monday and said it may close an unspecified number of its 101 clubs.
Blink is owned by luxury gym chain Equinox and is located primarily in cities and suburban areas in New York, New Jersey, California and Texas. Blink has more than 400,000 members.
Around 25% of US gyms and studios permanently closed during the Covid 19 pandemic – roughly 10,000 facilities, according to the Health & Fitness Association, an industry trade group. Several major chains, including 24 Hour Fitness and Gold’s Gym, filed for bankruptcy.
Blink’s bankruptcy shows the lingering impact of the pandemic on the fitness industry. During the height of the pandemic in 2020, Blink temporarily closed all of its clubs, leaving it without revenue to fund operations. Blink said in its bankruptcy filing that it is still was financially constrained by rent payments it had put off and was still trying to catch up on from the pandemic. An undisclosed number of its clubs are also unprofitable.
“It’s a sign that this is an industry still going through growing pains post-Covid,” Rick Caro, the president of fitness industry consulting firm Management Vision, told CNN.
The fitness industry faces other challenges, such as consumers cutting back on discretionary spending and the rise of GLP-1 drugs used for weight loss.
Luxury gyms such as Life Time are acquiring weight loss clinics with doctors who can prescribe GLP-1s, the powerful new class of medications that has proven to be highly effective at helping people shed weight, while Equinox is designing exercise programs specifically for people taking the medications.
Blink's financial struggles, as mentioned in its bankruptcy filing, are partially due to delayed rent payments and ongoing financial constraints caused by the pandemic. In an effort to adapt to changing consumer behaviors, luxury gyms like Life Time are now acquiring weight loss clinics to offer GLP-1 drugs, which are highly effective at promoting weight loss, thereby attracting discretionary spending.
