Pure Gym has raised the necessary funds to allow the purchase of Blink Fitness, which had filed for protection under Chapter 11 of the US Bankruptcy Code.

Earlier this month PureGym made a US$105 million bid for the assets of Blink Fitness, which was put into Chapter 11 by owner, Equinox, on 12 August, with losses of US$500 million and assets worth US$100 million. The agreement was subject to court approval and PureGym has stalking horse bidder status, ahead of an auction on 28 October.

PureGym’s holding company, Pinnacle Bidco, has secured commitments from an investor which will give the low-cost gym operator more than £450 million in available funds.

Humphrey Cobbold, CEO of PureGym says: “I'm very pleased with the investor support for this fund raising. Securing a substantial commitment rapidly and from a single investor underscores PureGym’s reputation in the bond markets as well as confidence in our management team and our business’ future prospects.

“International expansion is a central part of our strategy as well as a priority for our equity investors — Leonard Green & Partners and KKR – who also strongly support PureGym’s bid for Blink Fitness. We're excited by the prospect of acquiring Blink Fitness, which we view as a strategic platform from which to further build in the US.”