Blink Fitness acquired by PUREGYM

Structured as a distressed asset acquisition under Chapter 11 bankruptcy procedures, PureGym secures the operational core and regional network of Blink Fitness for a total purchase price of $121 million. Executed through the U.S. Bankruptcy Court for the District of Delaware following an initial filing in August 2024, the transaction enables PureGym to acquire Blink Fitness's corporate operations alongside 67 fitness clubs situated exclusively across New York and New Jersey. PureGym, backed by institutional shareholders Leonard Green & Partners and KKR, initially explored potential takeover transactions for Blink Fitness in 2018 and evaluated an acquisition in 2022 when parent company Equinox sought between $250 million and $300 million. Following the distress of Equinox's subsidiary in July 2024, PureGym formalized a stalking horse bid of $105 million on September 9, 2024, to anchor the court-supervised auction. During the three-day bankruptcy auction held in New York in late October 2024, PureGym prevailed over a competing bid from Planet Fitness and its regional franchise partner Supreme Fitness, successfully defending its winning position in a subsequent court hearing against unsecured creditor objections. Under the strategic perimeter defined by outgoing Chief Executive Officer Humphrey Cobbold and incoming Chief Executive Officer Clive Chesser, PureGym intentionally excluded Blink Fitness locations in California, Illinois, and Texas from the transaction perimeter to concentrate resources on East Coast hubs while renegotiating commercial lease terms with New York property landlords. Meanwhile, Blink Fitness continues evaluating standalone divestiture proposals for its remaining gyms across California, Illinois, Massachusetts, and Texas ahead of a formal court approval hearing scheduled for November 6, 2024. Transaction legal counsel was provided to PureGym by George Davis of Latham & Watkins alongside Norman Pernick and David Dean of Cole Schotz. Blink Fitness and selling parent entity Equinox were represented by Michael Nestor, Sean Greecher, Allison Mielke, Timothy Powell, Rebecca Lamb, and Ben Carver of Young Conaway Stargatt & Taylor.