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.
Sources (22)
- First Day DeclarationCourt filing (opens in a new tab)
- Final DIP OrderCourt filing (opens in a new tab)
- DIP MotionCourt filing (opens in a new tab)
- Core Sale OrderCourt filing (opens in a new tab)
- Non-Core Sale OrderCourt filing (opens in a new tab)
- Confirmation OrderCourt filing (opens in a new tab)
- Combined Plan and Disclosure StatementCourt filing (opens in a new tab)
- Effective Date NoticeCourt filing (opens in a new tab)
- Equinox-Owned Blink Fitness Files for Chapter 11 Bankruptcy (Business of Fashion, 2024-08-12)businessoffashion.com · August 12, 2024 (opens in a new tab)
- Equinox's Blink Fitness Latest Gym Chain to File for Bankruptcy (Front Office Sports, 2024-08)frontofficesports.com · August 1, 2024 (opens in a new tab)
- Blink Fitness, Equinox-Owned Gym Chain, Files for Bankruptcy (CBS News, 2024-08-12)cbsnews.com · August 12, 2024 (opens in a new tab)
- Blink Fitness Founded by Equinox in 2011 (Multiple Sources Summary)en.wikipedia.org · November 8, 2007 (opens in a new tab)
- Blink Fitness Files for Chapter 11 Bankruptcy (Farrell Fritz, 2024-08-15)farrellfritz.com · August 15, 2024 (opens in a new tab)
- Blink Fitness Files for Chapter 11 Bankruptcy (Financier Worldwide, 2024-08-20)financierworldwide.com · August 20, 2024 (opens in a new tab)
- Equinox Group's Blink Fitness Unit Files for Bankruptcy (SGB Online, 2024-08-14)sgbonline.com · August 14, 2024 (opens in a new tab)
- Blink Fitness Announces Outcome of Auction (PRNewswire, 2024-10-31)prnewswire.com · October 31, 2024 (opens in a new tab)
- PureGym Acquires Majority of Blink Fitness for $121M (Commercial Observer, 2024-11)commercialobserver.com · November 1, 2024 (opens in a new tab)
- PureGym Completes $121 Million Acquisition of Blink Fitness (Health Club Management, 2024-12)healthclubmanagement.co.uk · December 1, 2024 (opens in a new tab)
- Blink Fitness Announces Court Approval for Sale (Club Solutions Magazine, 2024-11-12)clubsolutionsmagazine.com · November 12, 2024 (opens in a new tab)
- Blink Fitness Receives Court Approval for Sale (Portage Point Partners, 2024-11-12)portagepointpartners.com · November 12, 2024 (opens in a new tab)
- Latham & Watkins Represents PureGym in Acquisition of Blink Fitness (Latham & Watkins, 2024-12)lw.com · December 1, 2024 (opens in a new tab)
- PureGym Finalizes Blink Fitness Deal (Athletech News, 2024-12-02)athletechnews.com · December 2, 2024 (opens in a new tab)
Case record
Plan confirmed ·
Public case facts. Searchable documents available. Full docket access requires Pro.
| Debtor(s) | Blink Holdings, Inc., et al. |
| Court | U.S. Bankruptcy Court, District of Delaware |
| Case Number | 24-11686 |
| Judge | Hon. J. Kate Stickles |
| Petition Date | August 12, 2024 |
| Reported Debt | About $280.8 million (secured funded debt, unsecured funded debt, and trade obligations) |
| DIP Facility | $73.5 million total authorized, including $21 million of new money and about $52.5 million of roll-ups |
| Sale | "Core" assets sold to PureGym's U.S. holding company for $121 million cash plus assumed liabilities; "non-core" assets sold separately |
| Plan Type | Confirmed joint chapter 11 liquidation plan administered by a plan administrator |
| Confirmation / Effective Date | February 28, 2025 (confirmed and effective the same day) |
| Claims Agent | Epiq Corporate Restructuring, LLC |
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.
| Positioning and pricing | Value-priced gym memberships reported in the $15–$45/month range, aimed at a broad consumer base |
| Prepetition scale (court filings) | 101 clubs (including franchise network), ~443,000 members (June 2024), ~2,074 employees at filing |
| "Core" sale footprint (reported) | PureGym acquisition described as corporate operations plus up to 67 gym locations in NY/NJ (and, in some reporting, PA) |
| Non-core markets (reported) | Locations in Chicago, Houston, and California described as part of the separate non-core disposition |
| Ownership context (reported) | Blink described as an Equinox-owned unit; Equinox itself was not a chapter 11 debtor in the Blink cases |
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.
| Secured funded debt (as described in filings) | $161.4 million |
| Unsecured funded debt (as described in filings) | $103.5 million |
| Trade and other obligations (as described in filings) | $15.9 million |
| Total reported debt (filings) | $280.8 million |
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.
| Total DIP facility authorized (final) | $73.5 million |
| New money commitments | $21.0 million |
| Interim roll-up | $17.414 million |
| Final roll-up | $35.086 million |
| Interim draw cap (as described) | $10.5 million |
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.
| Stated PIK rate (term summary) | 15% per annum (paid-in-kind) |
| Default rate (term summary) | PIK rate + 2% per annum |
| Administration fee (term summary) | $50,000 due on interim order entry |
| Closing fee (term summary) | 3.00% of each new-money lender’s commitments, payable at maturity |
| DIP agent (court filings) | Varagon Capital Partners Agent, LLC |
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.
| Buyer (core assets) | Pinnacle US Holdings LLC (PureGym-related buyer entity) |
| Headline price (reported) | $121 million in cash plus assumption of certain liabilities |
| Deposit (court filings) | $24.2 million deposit delivered within three business days of signing; credited at closing; refundability depends on termination scenario |
| Locations transferred (reported) | Corporate operations and up to 67 locations in NY/NJ (and some reporting includes PA) |
| Closing timing (reported) | Described as closing November 29, 2024, with subsequent industry coverage describing the deal being finalized in early December |
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.
| Core portfolio (Northeast focus) | Sold to PureGym-related buyer for $121 million cash plus assumed liabilities; reported to include corporate operations and up to 67 locations in NY/NJ (and some reporting includes PA) |
| Non-core portfolio (other markets) | Sold to an affiliate of JTRE Holdings (Lotemd Fit LLC); described as including Chicago, Houston, and California locations |
| Governance point | Two sale orders allowed separate execution and assumption/assignment selections for different lease and contract packages |
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.
| Class (illustrative) | Projected recovery (plan materials) |
| Prepetition loan secured claims | 30%–35% |
| General unsecured claims (including any deficiency) | 0% |
| Interests (equity) | 0% (canceled) |
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.
| Plan administrator | Burton Hastings Advisors LLC (sole officer/director supplied through the agreement) |
| Compensation (as described) | $20,000/month (first six months), then $15,000/month starting month seven |
| Claims objection deadline (confirmation order) | 180 days after the effective date |
| Admin expense deadline (effective date notice) | March 31, 2025 at 5:00 p.m. ET |
| Professional fee deadline (effective date notice) | April 14, 2025 at 5:00 p.m. ET |
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.
| Debtors’ counsel (court filings) | Young Conaway Stargatt & Taylor LLP |
| Investment banker (court filings) | Moelis & Company LLC |
| Restructuring advisor / CRO role (court filings and announcements) | Triple P RTS, LLC / Portage Point Partners (Steven Shenker as CRO) |
| Buyer counsel (PureGym) | Latham & Watkins LLP |
Timeline. Some reporting noted that Blink planned to close or optimize a portion of its locations as part of the restructuring process.
| Aug. 12, 2024 | Chapter 11 petitions filed in Delaware and the DIP process began |
| Aug. 2024 (early case period) | DIP new-money financing and sale-focused case posture described publicly |
| Oct. 31, 2024 | Auction outcome announced; PureGym selected as winning bidder for the core portfolio |
| Nov. 2024 | Court approvals for the core and non-core sales |
| Late Nov. / Early Dec. 2024 | PureGym acquisition closing and post-closing operational transition |
| Feb. 28, 2025 | Liquidating plan confirmed and effective |
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.
This article was researched and written with AI assistance, using court filings, public records, and news sources. AI-generated content can contain errors. Verify all information against primary sources before relying on it. This is not legal or financial advice. See the disclaimer.