Blink Fitness locations in New York City.
Bill Tompkins | Michael Ochs Archive | Getty Images
planet fitness The company wants to buy bankrupt budget fitness chain Blink Holdings, according to court filings seen by CNBC.
Planet Fitness previously lost a bankruptcy auction to UK-based privately held fitness chain Pure Gym. Now, a U.S. chain with a public market valuation of about $6.8 billion is trying something new.
Blink Fitness, a gym chain owned by Equinox Group, filed for bankruptcy protection in August after the upscale fitness group’s attempt to break into the budget market failed. Since then, more than 100 of the company’s fitness centers have been tied up in bankruptcy court.
Last week, Pure Gym won a bankruptcy auction for Blink and its assets, which include 60 gyms in New York and New Jersey, for $121 million, according to a bankruptcy filing.
Acquiring the Blink location would give Pure Gym an expansion of its U.S. operations after first entering the market in 2021.
A person familiar with the matter told CNBC that Planet Fitness’ initial bid was rejected in part due to concerns over antitrust considerations. Planet Fitness already has a large share of the fitness club market, with more than 2,000 clubs in the U.S., Piper Sandler estimates.
Planet Fitness submitted two offers for Brink’s subsequent play, according to the filing.
In one proposal, Planet Fitness would provide $142 million for Blink’s assets, including a $28.4 million bond, provided it would not have to address antitrust issues upfront.
The second proposal would increase the offer to $155 million with a $31 million bond and include filings with select regulators that proactively address antitrust concerns. Masu.
The Delaware bankruptcy court hearing New bids will be considered Wednesday at 11 a.m. ET.
Planet Fitness did not respond to CNBC’s request for comment.
