After voluntarily filing for Chapter 11 bankruptcy protection, budget gym chain Blink Fitness expects to shed some of its more than 100 locations.

In a petition filed Aug. 12 in Delaware bankruptcy court, the Equinox Group-owned brand said it is using the court-supervised process to help facilitate a sale that will position the business for long-term success.

As part of an effort to right-size its footprint to better align with market needs, Blink said it plans to close 10% of its locations.

“The gyms that are closing are non-core to Blink’s footprint and predominantly located outside of the New York City metro area. We regret having to take this action but have already alerted the members and staff at the impacted gyms and are taking steps to minimize the impact on employees and members,” a spokesperson told NJBIZ.

The company declined to comment on specific sites that are marked for closure.

Within New Jersey, Blink has 15 locations: Paramus, Lodi, Jersey City, Parsippany, Union, Clifton, Linden, South Orange, Irvington, Passaic, Perth Amboy, East Orange, Newark, Plainfield and Nutley.

A competitor of larger chains such as Planet Fitness and LA Fitness, Blink offers membership plans that range from about $15 to $45 per month, plus maintenance fees. Outside New Jersey, the 13-year-old brand operates in New York, Pennsylvania, California, Illinois, Texas and Massachusetts.

Building strength

In this week’s filing, Blink said it received a commitment for $21 million in new debtor-in-possession financing from existing lenders to help keep the lights on during the bankruptcy process, pending court approval.

The company also noted it has seen “continuous improvement” in recent financial performance, with revenue growing by 40% over the past two years. Earlier this year, Blink announced a multimillion dollar investment that includes upgrading 30 of its busiest locations with more than 1,700 pieces of new equipment.

Guy Harkless, who took the reins as president and CEO of Blink in late 2023, said in a statement, “Over the last several months, we have been focused on strengthening Blink’s financial foundation and positioning the business for long-term success.

“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,” Harkless continued. “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.”

According to CNN, roughly 10,000 fitness centers – which represents about a quarter of all gyms and studios in the U.S. – closed during the pandemic. Additionally, several major chains, such as 24 Hour Fitness, New York Sports Club and Gold’s Gym, filed for bankruptcy.

In its court filing, Blink said it is still trying to recover from temporarily shutting all clubs during the height of the COVID crisis in 2020 but hasn’t been able to overcome the loss of revenue and membership. Blink listed both assets and liabilities of $100 million to $500 million.