Finding an affordable gym could become more challenging. Blink Fitness, a budget-friendly gym chain with monthly memberships ranging from $15 to $45, filed for bankruptcy on Monday and indicated that it might close some of its 101 locations.
Blink, owned by luxury gym chain Equinox, operates mainly in cities and suburbs across New York, New Jersey, California, and Texas. The chain serves over 400,000 members.
The bankruptcy of Blink Fitness highlights the ongoing effects of the pandemic on the fitness industry. During the peak of the pandemic in 2020, Blink temporarily shut all its locations, resulting in a revenue loss that strained its finances. The gym chain has struggled with rent arrears and other financial constraints from the pandemic, and some of its clubs remain unprofitable.
Rick Caro, president of fitness industry consulting firm Management Vision, told CNN that Blink’s bankruptcy underscores the industry’s continued struggles in the post-Covid era. Around 25% of US gyms and studios closed permanently during the pandemic—about 10,000 facilities, according to the Health & Fitness Association. Major chains like 24 Hour Fitness and Gold’s Gym also filed for bankruptcy during this period.
The fitness industry faces additional challenges, including reduced discretionary spending by consumers and the growing use of GLP-1 drugs for weight loss. In response, luxury gyms such as Life Time are acquiring weight loss clinics with doctors who can prescribe these effective new medications, while Equinox is creating specialized exercise programs for those taking GLP-1s.
