Blink Fitness in Parsippany will close its doors at the end of this month, after the low-cost health-club chain filed for Chapter 11 bankruptcy protection Monday.
But locations in Paramus and Lodi will be spared, while the fate of the company’s venue in Clifton remained unclear.
Blink Fitness announced plans to shut 10% of its more than 100 gyms across seven states as it reorganizes. The chain, owned by luxury fitness brand Equinox Group, had advertised membership fees as low as $15 to $45 a month but couldn’t overcome the loss of revenue and membership sparked by the COVID pandemic.
A corporate spokesperson declined to say on Monday which of Blink’s 15 New Jersey locations would close. But staff at the Parsippany gym in the Morris Hills Shopping Center on Route 46 confirmed the shutdown, which is scheduled for Aug. 30.
Staff in Lodi and Paramus, meanwhile, said they’d been told their sites would remain open, while an employee who answered the phone at the Clifton venue was unsure.
“Over the last several months, we have been focused on strengthening Blink’s financial foundation and positioning the business for long-term success,” Blink CEO Guy Harkless said in a statement Monday.
“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.”
Blink said it received a commitment for $21 million in financing to keep the lights on during the bankruptcy process. The plan calls for reinvesting in 30 of the company’s ‘most popular fitness clubs,” according to bankruptcy filings.
Blink cited the COVID-19 pandemic, which led to the months-long closures of its gyms, as one of the main drivers of the bankruptcy decision. Blink said revenue grew by nearly 40% over the past two years, but that ultimately wasn’t enough to save the brand from bankruptcy. The COVID lockdowns coincided with soaring sales of at-home exercise equipment, which further eroded the popularity of fitness chains.
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What happens to Blink Fitness’ 15 NJ locations?
There are 15 Blink Fitness locations in New Jersey, according to its website:
- Paramus
- Lodi
- Jersey City
- Parsippany
- Union
- Clifton
- Linden
- South Orange
- Irvington
- Passaic
- Perth Amboy
- East Orange
- Plainfield
- Newark
- Nutley
What happens after bankruptcy filing?
A bankruptcy does not necessarily mean a company is doomed.
“A Chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time,” according to the U.S. courts website.
“Some companies don’t survive the Chapter 11 process, but many others, including household names such as Marvel Entertainment and General Motors, successfully emerge and thrive,” CFO Magazine added in a 2020 article.
Earlier this year, fashion retailer Express was able to emerge from bankruptcy with its stores intact, as was Joann fabrics and crafts.
NJ bankruptcy closings
Union-based Bed Bath & Beyond filed for bankruptcy in April 2023 and closed hundreds of stores in the U.S, including 13 in New Jersey. Last summer, Overstock.com bought the bankrupt retailer’s assets, relaunching BB&B as an online-only presence at bedbathandbeyond.com.
Rite Aid declared bankruptcy in October and has since closed 40 stores in New Jersey. Red Lobster declared bankruptcy in May as it sought out a buyer. Big Lots declared bankruptcy and announced plans to close hundreds of stores.
Meanwhile, trending mall clothing retailer Express filed for Chapter 11 protection and announced plans to close 95 U.S. stores, including all seven in New Jersey.
Parsippany shopping plaza loses another tenant
The Morris Hills Shopping Center on Route 46, at which the gym is based, has seen its share of lost tenants.
Marshalls and HomeGoods closed anchor stores at the mall earlier this year and moved across town to another Parsippany shopping center. The former movie mulitplex at the Morris Hills closed several years go as well.
Daniel Munoz covers business, consumer affairs, labor and the economy for NorthJersey.com and The Record.
Email: [email protected]; Twitter:@danielmunoz100 and Facebook
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