Blink Fitness, a gym chain owned by Equinox Group, files for bankruptcy.

• Chapter 11 bankruptcy has been filed by Blink Fitness, with assets and liabilities totaling $600 million.
• The fitness centers of the Equinox-owned budget-friendly chain will remain operational during the sale process.
• Nearly half of young Americans do not spend any money on fitness, according to a CNBC/Generation Lab Youth and Money Poll.

Equinox Group's budget-friendly gym chain, Blink Fitness, has filed for Chapter 11 bankruptcy.

More than 100 centers in the U.S., the low-cost fitness brand is the latest chain to seek bankruptcy post-pandemic, following companies like New York Sports Club, 24 Hour Fitness, and Gold's Gym.

The company intends to sell its business and has valued its assets and liabilities at $100 million and $500 million, respectively. It will continue to operate its fitness centers during the sale process, as stated in a release.

"Blink Fitness CEO and president Guy Harkless stated that the company has been concentrating on fortifying its financial base and preparing for long-term prosperity over the past few months. After thorough examination, the Board and management team concluded that the most advantageous course of action is to employ a court-supervised procedure to enhance the company's market presence and facilitate the sale of the business."

Equinox Group has previously made moves to improve its finances, and now its luxury fitness center, which is part of the group's holdings alongside SoulCycle and Pure Yoga, has completed a $1.8 billion funding round in March to refinance its $1.2 billion of debt.

Equinox, a privately held company, reported a 27% increase in revenue in 2023 and has nearly fully recovered its pre-pandemic membership levels. The company has plans to open over two dozen new locations worldwide.

In an attempt to enhance its finances, Equinox introduced a $40,000 yearly gym membership for its wealthiest members earlier this year.

The CNBC/Generation Lab Youth and Money Poll surveyed 1,034 Americans aged 18 to 34 in August and found that approximately one-third spend between $1 and $50 a month on exercise and fitness, while 47% report spending "nothing at all."

Blink offers membership plans ranging from $17 to $39 per month, depending on location, and competes with other budget gym chains, such as Planet Fitness, which increased its base membership price to $15 per month in June.

Planet Fitness reported a 7% increase in membership growth in its second quarter, reaching a total of 19.7 million members. Additionally, Planet Fitness's stock shares recently hit a 52-week high, surpassing levels not seen since May 2023.