PureGym Acquires Majority of Blink Fitness for $121M, but Faces Competition
By Isabelle Durso November 6, 2024 3:54 pm
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U.K.-based gym operator PureGym has acquired the majority of bankrupt Blink Fitness’ U.S. locations for $121 million in cash, the company announced last week. But an 11th-hour bid from another competing gym chain might change that.
Blink filed for Chapter 11 bankruptcy in August after reporting more than $280 million in debt, and now PureGym will obtain up to 67 of Blink’s 71 gyms across New York and New Jersey, according to a report from the Kroll Bond Rating Agency (KBRA).
As the winning bidder of Blink’s bankruptcy auction, PureGym will “implement capital improvements” and “ensure uninterrupted service for existing members,” according to KBRA.
The deal, which is pending court approval at a Wednesday hearing, does not include Blink’s locations in Texas, Illinois and California. Blink currently has 89 active gyms, according to KBRA.
However, a last-minute bid from competing gym chain Planet Fitness — which has more than 2,000 locations across the U.S. — may derail PureGym’s plans.
On Nov. 1, in the closing hour of PureGym’s deal, Planet Fitness submitted two larger bids: $141 million if no regulatory filings were required, and $153 million if Planet Fitness could submit the paperwork, the New York Post reported.
While the two proposals are considered in court Wednesday, PureGym seems to remain optimistic about its planned acquisition, despite Planet Fitness’ higher bids.
“The acquisition of Blink is transformational for PureGym in the U.S., a market we have been operating in since 2021,” PureGym CEO Humphrey Cobbold said in a statement. “It gives our group a meaningful presence in the country and a strong foothold in the attractive New York and New Jersey area.
“The American fitness market is the largest and most dynamic in the world,” Cobbold added. “We are incredibly excited by the scale of opportunity and the chance to tailor and apply our proven model there. Through investment and upgrades, we plan to enhance the high-quality fitness experience Blink members currently enjoy.”
Spokespeople for Blink, PureGym and Planet Fitness did not immediately respond to requests for further comment.
Equinox-owned Blink filed for bankruptcy in August with considerable debt and between $100 million and $500 million in assets and liabilities, which the company blamed on negative impacts from the pandemic.
Blink previously marketed itself as an “all-inclusive and inviting” place for people to work out, with memberships going for between $15 and $45 per month, according to Reuters.
But Blink isn’t the only gym that went bankrupt following the pandemic — 24 Hour Fitness, Gold’s Gym and Town Sports International have all shut down hundreds of stores since 2020.
Isabelle Durso can be reached at idurso@commercialobserver.com.
