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Blink Fitness, an affordable gym operator owned by Equinox, files for Chapter 11 bankruptcy

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Blink Fitness, an affordable gym operator owned by Equinox, files for Chapter 11 bankruptcy
News

News

Blink Fitness, an affordable gym operator owned by Equinox, files for Chapter 11 bankruptcy

2024-08-13 03:25 Last Updated At:03:30

NEW YORK (AP) — Gym operator Blink Fitness has filed for Chapter 11 bankruptcy protection.

Blink, an Equinox-owned chain with more than 100 locations, said Monday that it was filing for bankruptcy to help facilitate a sale of the business. The New York-based company added that its gyms remain open — with Blink telling its members that it anticipates “limited impact on day-to-day operations” through the process.

Also on Monday, Blink said it received a commitment for $21 million in new financing from existing lenders to help support its ongoing operations, pending court approval. Employees wages and vendor payments are expected to continue without interruption.

Founded in 2011, Blink has long billed itself as an affordable gym “for every body.” Membership plans range from about $15 to $39 per month plus maintenance fees, competitive with rates from larger rivals like Planet Fitness and LA Fitness. Blink is a smaller chain that operates in seven U.S. states: New York, New Jersey, Pennsylvania, California, Illinois, Massachusetts and Texas.

In its Chapter 11 petition, which was filed in Delaware bankruptcy court, Blink listed both assets and liabilities in the $100 million to $500 million range. Total debts for Blink and its affiliates filing for Chapter 11 amount more than $280 million, according to a court affidavit from Chief Restructuring Officer Steven Shenker Monday, which also suggests the debtors may reject leases of certain facilities that are no longer in operation as part of wider cost-cutting efforts.

The company said Monday that it has seen “continuous improvement” in recent financial performance, with revenue increasing by 40% over the last two years.

Blink also pointed to recently-announced efforts to boost member experiences in its most popular gyms. Monday's bankruptcy filing arrives just months after the company announced a multimillion-dollar investment that included upgrading 30 of its most-trafficked locations with more than 1,700 pieces of new equipment.

In a statement, Blink Fitness President and CEO Guy Harkless said that the company's leadership determined that using a court-supervised process to facilitate a sale “is the best path forward for Blink and will help ensure Blink remains the destination for all people seeking an inclusive, community-focused gym."

Blink did not immediately provide many details about the sale it's pursuing. The chain is currently owned by luxury fitness company Equinox Group — whose brands also include Soul Cycle, Pure Yoga and Equinox Fitness Clubs. The membership prices of those clubs are far more expensive than Blink's rates.

Equinox is not listed as a debtor in Monday's Chapter 11 documents and is not expected to file its own bankruptcy petition, Shenker notes.

Blink's bankruptcy filing arrives as much of the fitness industry works to bounce back pandemic-era losses. Gyms and workout studios from were among the hardest hit during the beginning days of COVID-19, as lockdowns shuttered or significantly limited many operations — including Blink, which was forced to temporarily close all of its gyms at the height of the pandemic, the company's bankruptcy documents note.

But gyms that made it through the worst have seen some stability since. Visits to major fitness chains were up nearly every week between January and April of this year compared to 2023's numbers, according to recent data from Placer.ai, which tracks retail and foot traffic.

FILE — People line up outside the Blink Fitness gym, March 26, 2021, in the Lower East Side neighborhood of New York. (AP Photo/Mary Altaffer, File)

FILE — People line up outside the Blink Fitness gym, March 26, 2021, in the Lower East Side neighborhood of New York. (AP Photo/Mary Altaffer, File)

SPRINGFIELD, Ohio (AP) — For many Haitian immigrants, Sunday mornings in Springfield, Ohio, are spent joyfully worshipping God as they sing and pray in their native Creole. This Sunday, they needed that uplifting balm more than ever.

Their community is reeling — confused, frustrated, hurt — from false accusations that they are eating their neighbor’s cats and dogs. The now viral and highly politicized rumors are being fueled by former President Donald Trump, his running mate JD Vance and others, and violent threats against the community are upending daily life in their city.

“Jesus is with us in truth, and the truth is that Haitians are not eating pets and geese in Springfield,” said the Rev. Carl Ruby, preaching at Central Christian Church. He invited community members to join his congregation in prayer and peaceful protest of the false rumors leveled against their Haitian neighbors.

They also demanded an apology.

“It is truth that a retraction of these rumors will help to restore peace in Springfield," Ruby said. “We respectfully call on all politicians and media figures who are promoting this rumor to help make Springfield great and safe again by speaking the truth about our community.”

Viles Dorsainvil, the leader of Haitian Community Help and Support Center in Springfield, accepted Ruby's invitation to worship together at Central Christian, and was grateful to be relying on his faith.

“It’s important to be here because we’re Christian — despite everything, we worship in good times and bad times,” he said. “I’m relieved that I’m in the presence of God. It’s therapeutic.”

And he had a message for Trump and Vance: “If they have the heart of God, they will think differently and speak differently.”

The rumors, spread on social media and by Trump during Tuesday’s televised presidential debate against Vice President Kamala Harris, have exacerbated fears about division and anti-immigrant sentiment ahead of the election in the mostly white, blue-collar city of about 59,000 where more than 15,000 Haitians now live and work.

Thousands of temporary Haitian migrants have legally landed in Springfield in recent years under the U.S.'s Temporary Protected Status program, as longstanding unrest in their home country has given way to violent gangs ruling the streets.

Ohio Gov. Mike DeWine, a Republican, has said the federal government needs to do more to help cities like Springfield serve the influx of migrants. On ABC’s “This Week," DeWine called the Haitians good, hardworking people who are in the U.S. legally, and said the false rumors are a piece of internet garbage.

“There’s no evidence of this at all,” he said during the program.

Despite the governor and local officials debunking the rumors, Vance reiterated the conspiracy theory on Sunday's “Face the Nation” on CBS while blasting Harris on her U.S.-Mexico border policy.

At Central Christian Church, Ruby encouraged his congregation to help hand out thousands of cards around Springfield that had been printed in Creole and English with a message of support for Haitians. It reads" “I’m glad you are here. Christ loves you and so do I."

As the service ended, Ruby praised parishioners for a beautiful moment amid what he called a storm of chaos. Looking at the Haitian members in the first pew and at the rest of his congregation, he asked them to come together in prayer: “Pray and think what it is to be a Haitian parent sending their child this week to school."

One of those parents is Mia Perez, 35 an immigration lawyer whose 9-year-old daughter had to evacuate her school twice because of bomb threats to a nearby DMV this week.

“Kids in school are being asked by other kids: ’How does the dog taste? How does the cat taste?” Perez said, describing her daughter’s distress.

"She’s asking, 'Are we the kind of Haitians who eat this kind of stuff? Is it true? What’s happening?'”

“This is a conversation that I was not ready to have with my daughter," Perez said. "I felt disrespected of our culture.”

Oher emotional worship services were held around Springfield on Sunday.

Dozens sang and prayed at The First Haitian Church, located next to the Haitian Community Center.

“They feel the threat. They feel not welcome,” Bernardette Dor, 51, one of the pastors, said after the service. “Even in the school system sometimes, they feel different, not because of their skin color but because they’re Haitian. But the reality is that we’re beautiful and we’re blessed.”

Though she worries about repercussions of the false statements, she said gathering to worship with her community and feeling support from others in Springfield gives her hope.

“We are united. It is time for good to stand for good,” she said. “This time the city of Springfield, Haitian people, asked the Lord to stay together to fight for good ... America is a great loving country, and American people care for people – it doesn’t matter if they are Haitian. We’re against lies.”

After the service, some parishioners gathered at Rose Goute Creole restaurant for a traditional Haitian meal of rice and beans, fried plantains and pork. One of them, Jacob Payen, said the restaurant has been transformed in the past week.

“We’ve been outnumbered — we have more non-Haitian guests here at the restaurant who are curious to know the culture and Haitian cuisine,” he said. “We feel that they’re sending a strong message: if they’re here eating with us because they trust us.”

Among those attending the earlier service at Central Christian was Rose-Thamar Joseph, 40, who works at the Haitian Community Center.

“I was praying for peace and protection — for the Haitian community and all of Springfield," she said. “I just want Springfield to go back to what it was a couple of months ago."

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AP visual journalist Jessie Wardarski contributed.

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Associated Press religion coverage receives support through the AP’s collaboration with The Conversation US, with funding from Lilly Endowment Inc. The AP is solely responsible for this content.

Carl Ruby, pastor at Central Christian Church, hugs Viles Dorsainvil during service, on Sunday, Sept. 15, 2024, in Springfield, Ohio. (AP Photo/Jessie Wardarski)

Carl Ruby, pastor at Central Christian Church, hugs Viles Dorsainvil during service, on Sunday, Sept. 15, 2024, in Springfield, Ohio. (AP Photo/Jessie Wardarski)

Members of the Haitian community, from left, Lindsay Aime, James Fleurijean, Rose-Thamar Joseph, Harold Herard, and Viles Dorsainvil, stand for worship with Carl Ruby, pastor at Central Christian Church, in Springfield, Ohio, on Sunday, Sept. 15, 2024. (AP Photo/Jessie Wardarski)

Members of the Haitian community, from left, Lindsay Aime, James Fleurijean, Rose-Thamar Joseph, Harold Herard, and Viles Dorsainvil, stand for worship with Carl Ruby, pastor at Central Christian Church, in Springfield, Ohio, on Sunday, Sept. 15, 2024. (AP Photo/Jessie Wardarski)

Carl Ruby, pastor at Central Christian Church, hugs Lindsay Aime during service, on Sunday, Sept. 15, 2024, in Springfield, Ohio. (AP Photo/Jessie Wardarski)

Carl Ruby, pastor at Central Christian Church, hugs Lindsay Aime during service, on Sunday, Sept. 15, 2024, in Springfield, Ohio. (AP Photo/Jessie Wardarski)

Central Christian Church congregants stand to applaud members of the Haitian community during service, on Sunday, Sept. 15, 2024, in Springfield, Ohio. (AP Photo/Jessie Wardarski)

Central Christian Church congregants stand to applaud members of the Haitian community during service, on Sunday, Sept. 15, 2024, in Springfield, Ohio. (AP Photo/Jessie Wardarski)

Members of the Haitian community in Springfield, Ohio, from left, Lindsay Aime, James Fleurijean, Viles Dorsainvil, and Rose-Thamar Joseph, stand for worship at Central Christian Church, on Sunday, Sept. 15, 2024. (AP Photo/Jessie Wardarski)

Members of the Haitian community in Springfield, Ohio, from left, Lindsay Aime, James Fleurijean, Viles Dorsainvil, and Rose-Thamar Joseph, stand for worship at Central Christian Church, on Sunday, Sept. 15, 2024. (AP Photo/Jessie Wardarski)

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