Seeks to execute value maximizing sale
through court-supervised restructuring process
Continuing to serve members and communities
with best-in-class gym services
Receives commitment for
$21 million in new financing to
support business operations
NEW
YORK, Aug. 12, 2024 /PRNewswire/ -- Blink
Fitness ("Blink" or the "Company"), the affordable fitness brand
known for its commitment to an all-inclusive and inviting
environment, today announced that the Company has made the
strategic decision to execute an efficient and value-maximizing
sale process to optimize its footprint and position the business
for long-term success. To facilitate the sale process, Blink has
voluntarily filed for protection under Chapter 11 of the U.S.
Bankruptcy Code in the District of Delaware.
Throughout its sale process, Blink intends to continue to
provide members with the high-quality fitness experience they have
come to expect. The Company remains committed to its recently
announced strategic initiatives to reinvigorate its most popular
gyms, elevate its member experience and deepen its community
connections, with a continued focus on democratizing fitness for
all.
Blink has demonstrated continuous improvement in its financial
performance over the past two years with revenue increasing by
nearly 40%. In 2024, the Company expects to build on this momentum
and deliver the best top and bottom line performance over the last
five years.
"Over the last several months, we have been focused on
strengthening Blink's financial foundation and positioning the
business for long-term success," said Guy
Harkless, President and Chief Executive Officer of Blink
Fitness." After evaluating our options, the Board and management
team determined that using the court-supervised process to optimize
the Company's footprint and effectuate a sale of the business is
the best path forward for Blink and will help ensure Blink remains
the destination for all people seeking an inclusive,
community-focused gym. We thank our entire corporate and gym team
for their continued dedication to our members, as well as our
vendors and partners for their ongoing support. We look forward to
emerging from this process as an even stronger business."
In connection with the court-supervised process, Blink has
received a commitment of $21 million
in new debtor-in-possession financing from its existing lenders.
Once approved by the Court, this new financing, combined with cash
generated from the Company's ongoing operations, will support the
business during this process.
Blink Fitness has filed certain customary motions with the Court
seeking approval to continue to support its operations during the
court-supervised process, including paying employee wages and
benefits without interruption. The Company intends to pay vendors
and suppliers in full under normal terms for goods and services
provided on or after the filing date.
Additional Information
Additional information regarding the Company's court-supervised
process is available at Blink's restructuring website,
BlinkFitnessFuture.com.
Court filings and other information related to the proceedings
are available on a separate website administered by the Company's
claims agent, Epiq, at https://dm.epiq11.com/BlinkFitness or
at 877-607-9009 (for toll-free U.S. and Canada calls) or 1-971-365-4515.
Advisors
Blink Fitness is represented by Young
Conaway Stargatt & Taylor, LLP as legal advisor, Moelis
& Company as financial advisor and Portage Point Partners as
restructuring advisor, with Steven
Shenker serving as Chief Restructuring Officer.
About Blink Fitness
Blink Fitness - a premium and affordable fitness brand known for
its commitment to an all-inclusive environment - is the gym for
"every body" who wants to feel their best and improve their life
through fitness. Blink provides a super-friendly and squeaky-clean
experience with more than 100 locations throughout New York, New
Jersey, Pennsylvania,
California, Illinois, Massachusetts, and Texas. Blink has been ranked on the Inc. 5000
list four times, was recognized as one of the top health clubs by
Club Industry, and has been acknowledged for its affordability on
"best gym" lists by Men's Health, Sports Illustrated, Time Out New
York, Byrdie, and Forbes Health.
For more information about Blink, visit us here.
Contact:
Media:
Rachel Rosenblatt / Rose
Temple
FTI Consulting
BlinkComms@fticonsulting.com
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SOURCE Blink Fitness