Equinox-owned Blink Fitness has filed for Chapter 11 bankruptcy in Delaware, marking a significant turn for the low-cost gym brand. The company is grappling with a challenging market, where competition continues to intensify and operational costs soar. This filing positions Blink among various other gym chains that have succumbed in the wake of the COVID-19 pandemic, including 24 Hour Fitness and Gold’s Gym.

According to court documents, Blink reported assets and liabilities ranging from $100 million to $500 million. Despite the bankruptcy filing, the gym intends to maintain operations while searching for potential buyers. The company has acquired $21 million in financing from lenders, which could help stabilize its operations during this transition.

Blink targets a youthful demographic, with over 65% of its members under 35. Its membership fees vary, ranging from $15 to $45 per month, highlighting its commitment to affordability in contrast to higher-end fitness options. The brand operates over 100 fitness locations across the United States, employing around 2,000 individuals.

The bankruptcy comes amid Equinox’s own financial struggles, which recently led the upscale gym chain to secure a $1.8 billion refinancing deal to manage its debt obligations. Blink’s financial burden exceeds $280 million in loans and trade debts, underscoring the mounting pressures within the fitness industry.

As the fitness landscape evolves, Blink’s pursuit of stability could reshape its future and provide insights into broader industry trends. The case number for Blink Holdings is 24-11686 in the US Bankruptcy Court for the District of Delaware, with its next steps closely watched by the market.