In a significant shake-up for budget fitness enthusiasts, Blink Fitness has announced its filing for bankruptcy, signaling potential closures of some of its gyms.
The affordable gym chain, known for its monthly membership fees ranging between $15 and $45, disclosed the bankruptcy filing on Monday. Blink Fitness, a subsidiary of the luxury gym group Equinox, operates a network of 101 locations primarily in urban and suburban areas across New York, New Jersey, California, and Texas, serving over 400,000 members.
The fitness industry, already reeling from the effects of the COVID-19 pandemic, continues to experience turbulence. The pandemic led to the permanent closure of approximately 25% of U.S. gyms and studios—around 10,000 facilities—according to the Health & Fitness Association. Notable fitness chains, including 24 Hour Fitness and Gold’s Gym, also faced bankruptcy during this period.
Blink Fitness’s financial struggles underscore the ongoing challenges within the sector. During the pandemic’s peak in 2020, the chain was forced to close its gyms temporarily, halting its revenue streams and exacerbating financial difficulties. The bankruptcy filing reveals ongoing issues, including deferred rent payments from the pandemic and several unprofitable locations.
“This situation illustrates the persistent growing pains the fitness industry is facing in the wake of COVID-19,” remarked Rick Caro, president of the fitness industry consultancy Management Vision.
Further complicating the landscape, the fitness industry is contending with reduced consumer spending on discretionary items and the emerging popularity of GLP-1 drugs, which are used for weight loss. In response, luxury fitness brands like Life Time are expanding into weight loss clinics, and Equinox is developing specialized exercise programs tailored for users of these new medications.
