Blink Fitness: 363 Asset Sales and Confirmed Liquidation Plan

Blink Fitness filed chapter 11 petitions on August 12, 2024 in the District of Delaware. The debtors moved toward a sale rather than an operating turnaround, with a DIP facility that included a roll-up of prepetition obligations, a section 363 process that split the asset disposition into "core" and "non-core" packages, and a confirmed liquidating plan to administer residual assets and claims after the sales closed.

Reporting around the auction and sale approvals described PureGym as the winning bidder for the Northeast-focused “core” portfolio at a $121 million cash price while a separate buyer acquired “non-core” assets in other markets, allowing the estates to pursue a cleaner liquidation and claims process once the operating platform had been transferred. The court later confirmed a joint chapter 11 liquidation plan, with plan materials projecting recoveries for secured funded debt holders and no recovery for general unsecured creditors or equity.

363 Sales of Blink Fitness and a Confirmed Liquidating Plan

Company background. Blink was positioned as a lower-cost gym concept in a market where membership pricing and density shape the ability to carry rent, equipment leases, and staffing. Public reporting around the filing described monthly membership pricing in a roughly $15 to $45 range and emphasized the chain's New York-heavy footprint, with the company operating more than 100 gyms and citing a majority of locations in New York City and Long Island. The company's background as an Equinox-founded concept also shaped how the case was understood externally: outlets described Blink as an Equinox-owned brand positioned as an affordable alternative to Equinox's premium clubs.

Court filings described a larger operating footprint when including both corporate and franchised clubs. The First Day Declaration indicated that the debtors (or their franchisees) operated 101 Blink Fitness clubs as of the petition date, serving about 443,000 members as of June 2024, with about 2,074 employees at filing.

Why the company filed. The distress narrative in public sources and filings focused on how gym economics deteriorated during COVID-era shutdowns and the way that lease deferrals became a medium-term burden rather than a short-term accommodation. Commentary around the case described a nine-month closure period in 2020 and referenced deferred rent obligations that accumulated during the shutdown window, with filings describing liquidity constraints driven by a combination of funded debt and underperforming clubs in the prepetition period. Some reporting also highlighted a potentially counterintuitive tension: sources said Blink had seen revenue growth of roughly 40% over two years and projected strong performance for 2024 even as it sought chapter 11 relief. Balance sheet at filing. Public reporting described debt exceeding $280 million. Court filings described total debt of approximately $280.8 million, consisting of about $161.4 million of secured funded debt, $103.5 million of unsecured funded debt, and $15.9 million of trade and other obligations at filing.

DIP financing. Early coverage emphasized a $21 million DIP loan from existing lenders. The final DIP structure described in the Final DIP Order authorized a $73.5 million total facility composed of $21.0 million of new money commitments plus an interim roll-up of protective advances and a final roll-up of portions of term and delayed-draw term loans.

The interim roll-up amount was treated pari passu with new money, while the final roll-up was junior to new money and the interim roll-up. An interim borrowing limit of $10.5 million applied during the interim period, with broader availability after entry of the final order.

DIP economics. The DIP Motion term summary described a PIK applicable rate of 15% per year and a default rate of the PIK rate plus 2% per year. The summary also described a $50,000 administration fee payable upon entry of the interim order and a closing fee of 3% of each new-money lender's commitments payable at maturity.

DIP milestones. The DIP Motion described a milestones framework tied to early case actions, including entry of interim DIP relief, filing sale and bidding procedures motions early in the case, and retaining investment banking support. Failure to meet milestones constituted an event of default under the DIP facility.

Auction outcome. The company announced on October 31, 2024 that PureGym was selected as the winning bidder for a substantial portion of assets at a $121 million cash purchase price, with the buyer assuming certain liabilities. Planet Fitness reportedly submitted competing bids on November 1, including figures of $141 million and $153 million under different regulatory-filing assumptions, but PureGym ultimately acquired the assets through the court-approved process.

The PureGym transaction was also framed as a strategic step in the buyer's U.S. expansion. Blink's auction announcement described PureGym as backed by Leonard Green & Partners and KKR and characterized the acquisition as part of PureGym's strategy to expand in the United States. After closing, industry coverage described a rebranding plan and CEO transition at PureGym, with Clive Chesser named as CEO and Humphrey Cobbold moving to chair.

Core sale terms. The Core Sale Order reflected a $121 million base price subject to adjustments, with the purchase price also including assumed liabilities and buyer cure costs. The agreement required a $24.2 million deposit delivered within three business days of signing, credited to the cash payment at closing and nonrefundable in certain buyer-default termination scenarios.

Non-core asset disposition. Industry reporting described the non-core sale as including locations in Chicago, Houston, and California acquired by an affiliate of JTRE Holdings, while the PureGym purchase focused on New York and New Jersey. The Non-Core Sale Order described consideration as a combination of assumed liabilities and a closing cash payment under the relevant asset purchase agreement, with the order authorizing assumption and assignment of selected executory contracts and unexpired leases.

Confirmed liquidating plan. The court's Confirmation Order confirmed a joint chapter 11 liquidation plan administered by a plan administrator. The Combined Plan and Disclosure Statement projected a 30%–35% recovery range for prepetition loan secured claims and a 0% recovery for general unsecured claims (including any deficiency) and equity interests.

The effective date occurred on the same day as confirmation (February 28, 2025). The Effective Date Notice set specific deadlines for administrative expense requests and professional fee applications, and the confirmation order included a claims objection deadline of 180 days after the effective date.

Plan administrator. The Confirmation Order identified Burton Hastings Advisors LLC as plan administrator, with the plan supplement providing for Mr. Peter Hurwitz as the sole officer and director of the post-effective date debtors. The agreement described monthly compensation of $20,000 for the first six months after the effective date and $15,000 starting in month seven.

Case professionals. The First Day Declaration described engagement of Moelis & Company as investment banker and Triple P RTS (Portage Point Partners) in a restructuring advisor/CRO role, while buyer-side materials described Latham & Watkins representing PureGym in the acquisition.

Timeline. Some reporting noted that Blink planned to close or optimize a portion of its locations as part of the restructuring process.

Frequently Asked Questions

When did Blink Fitness file for chapter 11 bankruptcy, and where was the case filed?

Blink's debtors filed chapter 11 petitions on August 12, 2024 in the U.S. Bankruptcy Court for the District of Delaware.

How much debt did Blink report at filing?

Reporting around the filing described debt exceeding $280 million, consistent with a court-filed breakdown totaling about $280.8 million across secured funded debt, unsecured funded debt, and trade/other obligations.

What was Blink’s DIP financing package and how much was new money?

Public coverage emphasized $21 million of new-money DIP financing from existing lenders, while court filings described a $73.5 million DIP package that combined the $21 million new-money component with roll-ups of portions of prepetition obligations.

What was sold in the “core” asset sale and what was the purchase price?

The core transaction was described as the sale of Blink's corporate operations and a large set of Northeast locations, at a $121 million cash price plus assumed liabilities.

Who acquired Blink’s core assets and when did the transaction close?

Public announcements described PureGym as the winning bidder for the core assets, with the acquisition described as closing on November 29, 2024 and later industry coverage describing the deal as finalized in early December.

What were the “non-core” assets and how were they disposed of?

Reporting described a separate non-core sale covering locations in Chicago, Houston, and California to a buyer affiliated with JTRE Holdings, structured as a distinct court-approved transaction alongside the core sale.

Did unsecured creditors or equity receive recoveries under the confirmed plan?

Plan materials projected a recovery range for secured prepetition loan claims but projected 0% recoveries for general unsecured claims and a cancellation of equity interests, consistent with a liquidation-plan structure following the sales.

What was the case outcome after the sales (reorganization vs. liquidation)?

The case proceeded to confirmation and effectiveness of a joint chapter 11 liquidation plan administered by a plan administrator, indicating a wind-down and distributions process rather than an operating reorganization.

Who is the claims agent for Blink Fitness?

Epiq Corporate Restructuring, LLC serves as the claims and noticing agent. The firm maintains the official claims register and distributes case notifications to creditors and parties in interest.

For more chapter 11 case research and creditor-focused explainers, visit the ElevenFlo blog.