Blink Fitness, the affordable fitness brand founded in 2011 and owned by Equinox Holdings, has filed for Chapter 11 bankruptcy in the District of Delaware, owing around US$400 million.

Its assets are reported to be US$100 million and liabilities US$500 million.

The business will now be put up for sale.

The decision comes despite the company saying it expects 2024 to be its best year in five years and reporting continuous improvement in its financial performance over the past two years, with revenue increasing by almost 40 per cent, indicating the scale of the challenge.

Guy Harkless, president and CEO of Blink Fitness said: “After evaluating our options, the board and management team determined that using the court-supervised process to effectuate a sale of the business is the best path forward for Blink... we look forward to emerging from this process as a stronger business."

Blink is planning to stay operational and continue to work on its recently announced initiatives to reinvigorate its most popular gyms and elevate the member experience.

In connection with the court-supervised bankruptcy process, the company has received a commitment of US$21 million in new debtor-in-possession financing from its existing lenders and intends to pay vendors and suppliers in full.

Blink markets itself as an inclusive and affordable brand, with around 100 locations throughout New York, New Jersey, Pennsylvania, California, Illinois, Massachusetts and Texas and around 300,000 members.

It has said it plans to close 10 per cent of its sites which are loss-making. Ninety-four are corporate-owned and seven are franchised.

Equinox raised investment itself earlier this year to accelerate growth through new club openings, scale the Equinox luxury experience and look for more US and international opportunities. It has also hired a new president Marc Mastronardi.