Seeks to execute value maximizing sale through court-supervised restructuring process
Continuing to serve members and communities with best-in-class gym services
Receives commitment for $21 million in new financing to support business operations
NEW YORK, Aug. 12, 2024 /PRNewswire/ — Blink Fitness ("Blink" or the "Company"), the affordable fitness brand known for its commitment to an all-inclusive and inviting environment, today announced that the Company has made the strategic decision to execute an efficient and value-maximizing sale process to optimize its footprint and position the business for long-term success. To facilitate the sale process, Blink has voluntarily filed for protection under Chapter 11 of the U.S. Bankruptcy Code in the District of Delaware.
Throughout its sale process, Blink intends to continue to provide members with the high-quality fitness experience they have come to expect. The Company remains committed to its recently announced strategic initiatives to reinvigorate its most popular gyms, elevate its member experience and deepen its community connections, with a continued focus on democratizing fitness for all.
Blink has demonstrated continuous improvement in its financial performance over the past two years with revenue increasing by nearly 40%. In 2024, the Company expects to build on this momentum and deliver the best top and bottom line performance over the last five years.
"Over the last several months, we have been focused on strengthening Blink’s financial foundation and positioning the business for long-term success," said Guy Harkless, President and Chief Executive Officer of Blink Fitness." 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. 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."
In connection with the court-supervised process, Blink has received a commitment of $21 million in new debtor-in-possession financing from its existing lenders. Once approved by the Court, this new financing, combined with cash generated from the Company’s ongoing operations, will support the business during this process.
Blink Fitness has filed certain customary motions with the Court seeking approval to continue to support its operations during the court-supervised process, including paying employee wages and benefits without interruption. The Company intends to pay vendors and suppliers in full under normal terms for goods and services provided on or after the filing date.
Additional Information
Additional information regarding the Company’s court-supervised process is available at Blink’s restructuring website, www.BlinkFitnessFuture.com.
Court filings and other information related to the proceedings are available on a separate website administered by the Company’s claims agent, Epiq, at https://dm.epiq11.com/BlinkFitness or at 877-607-9009 (for toll-free U.S. and Canada calls) or 1-971-365-4515.
Advisors
Blink Fitness is represented by Young Conaway Stargatt & Taylor, LLP as legal advisor, Moelis & Company as financial advisor and Portage Point Partners as restructuring advisor, with Steven Shenker serving as Chief Restructuring Officer.
About Blink Fitness
Blink Fitness – a premium and affordable fitness brand known for its commitment to an all-inclusive environment – is the gym for "every body" who wants to feel their best and improve their life through fitness. Blink provides a super-friendly and squeaky-clean experience with more than 100 locations throughout New York, New Jersey, Pennsylvania, California, Illinois, Massachusetts, and Texas. Blink has been ranked on the Inc. 5000 list four times, was recognized as one of the top health clubs by Club Industry, and has been acknowledged for its affordability on "best gym" lists by Men’s Health, Sports Illustrated, Time Out New York, Byrdie, and Forbes Health.
For more information about Blink, visit us here.
Contact:
Media:
Rachel Rosenblatt / Rose Temple
FTI Consulting
[email protected]
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SOURCE Blink Fitness
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