Planet Fitness Aims to Acquire Bankrupt Blink Fitness Chain
In the world of fitness chains, acquisitions and bankruptcies are not uncommon occurrences. Recently, Planet Fitness has set its sights on acquiring the bankrupt budget fitness chain Blink Holdings, as revealed in court filings obtained by CNBC.
Planet Fitness, a well-known name in the fitness industry with a public market valuation of around $6.8 billion, had previously lost out in a bankruptcy auction to UK-based PureGym. Now, the U.S. chain is making a fresh bid to acquire Blink Fitness, which filed for bankruptcy protection in August.
Blink Fitness, owned by Equinox Group, found itself in financial trouble after a failed expansion attempt into the budget-friendly market. With more than 100 fitness centers under its belt, Blink Fitness’ assets were up for grabs in the bankruptcy auction.
Last week, PureGym emerged as the winner of the bankruptcy auction, securing Blink Fitness and its assets, including 60 gyms in New York and New Jersey, with a bid of $121 million. This move would expand PureGym’s presence in the U.S. market, following its entry in 2021.
Planet Fitness’s initial bid was turned down due to concerns about antitrust issues, given the company’s significant market share in the fitness club industry. Undeterred, Planet Fitness submitted two new offers in an attempt to acquire Blink Fitness.
The first proposal includes a bid of $142 million, with a $28.4 million deposit, contingent on not having to address antitrust concerns upfront. The second offer increases the bid to $155 million, with a $31 million deposit, and includes addressing select regulatory filings to preempt antitrust concerns.
A hearing is scheduled in a Delaware bankruptcy court to review the new bids on Wednesday at 11 a.m. ET. Planet Fitness has not commented on the matter yet.
At Extreme Investor Network, we keep a close eye on the latest developments in the business world, including mergers and acquisitions in industries like fitness. Stay informed with our exclusive insights and analysis to make informed investment decisions. Don’t miss out on the latest updates from CNBC PRO, your trusted source for business news.