PureGym to acquire Blink's corporate
operations and a significant number of locations, primarily in
New York and New Jersey
An affiliate of JTRE Holdings LLC to acquire
Blink's Chicago, Houston, and California locations
Sale expected to close later this year
NEW
YORK, Nov. 12, 2024 /PRNewswire/ -- Blink
Fitness ("Blink" or the "Company"), the affordable fitness brand
known for its commitment to an inclusive and inviting environment,
today announced that the U.S. Bankruptcy Court has approved the
sale of Blink's corporate operations and New York and New
Jersey locations to PureGym. On November 7, 2024, the Court also approved the
sale of Blink's Chicago,
Houston, and California locations to an affiliate of JTRE
Holdings LLC ("JTRE").
"We are pleased to have reached another milestone in our sale
process, and look forward to emerging an even stronger business,
under new ownership that believes in the value of our mission,"
said Guy Harkless, President and
Chief Executive Officer of Blink Fitness. "We are excited to
continue our work to position the business and various gyms for
long-term success, as we remain focused on providing members with
an inclusive, community-focused gym experience. I'd like to
reiterate my thanks to each member of Blink Nation, who go the
extra mile every day, providing members with an elevated gym
experience."
Humphrey Cobbold, CEO of PureGym
commented, "We are delighted with the court approval which sets us
well on the way to completion later this year. We have enjoyed
working with and getting to know the Blink Fitness team and are
looking forward to working with them to deliver a fantastic fitness
experience for members. It is also the right moment to pay tribute
to the PureGym team who have been involved in our acquisition of
Blink Fitness. In getting to this point our team has worked
tirelessly over the last few months, with great professionalism and
dedication, and I pay tribute to the role they have played in what
is a transformational moment for PureGym in the USA."
"We have long admired Blink's mission to democratize fitness for
all and we are excited to carry this forward through JTRE's
acquisition," said Jack Terzi, CEO
JTRE. "Having access to a welcoming environment for physical
fitness is important to both our team and the communities we serve.
I am delighted that JTRE can be a steward of the Blink mission
moving forward."
Agreement Details
As previously announced on October 31,
2024, PureGym, whose investors include Leonard Green & Partners and KKR, will
acquire Blink's corporate operations and a substantial portion of
Blink's locations, with a focus on New
York and New Jersey for
$121 million in cash. PureGym also
intends to assume certain liabilities.
In addition, Blink has entered into an agreement with an
affiliate of JTRE Holdings LLC under which JTRE will acquire
Blink's Chicago, Houston, and California locations. Blink is collaborating
closely with JTRE Holdings to develop a seamless transition plan
for these sites and will keep stakeholders informed as further
decisions are made. The transaction with JTRE does not include
franchise locations, which continue to operate as usual.
Both transactions are expected to close later this year.
Additional Information
Additional information regarding the Company's court-supervised
process is available at Blink's restructuring website,
http://www.BlinkFitnessFuture.com.
Court filings and other information related to the proceedings
are available on a separate website administered by the Company's
claims agent, Epiq, at https://dm.epiq11.com/BlinkFitness or
at 877-607-9009 (for toll-free U.S. and Canada calls) or 1-971-365-4515 (for tolled
international calls).
Advisors
Blink Fitness is represented by Young
Conaway Stargatt & Taylor, LLP as legal advisor, Moelis
& Company as financial advisor, and Portage Point Partners as
restructuring advisor, with Steven
Shenker serving as Chief Restructuring Officer.
About Blink Fitness
Blink Fitness - a premium and affordable fitness brand known for
its commitment to an all-inclusive environment - is the gym for
"every body" who wants to feel their best and improve their life
through fitness. Blink provides a super-friendly and squeaky-clean
experience with more than 80 locations throughout New York, New
Jersey, California,
Illinois, Massachusetts, and Texas. Blink has been ranked on the Inc. 5000
list four times, was recognized as one of the top health clubs by
Club Industry, and has been acknowledged for its affordability on
"best gym" lists by Men's Health, Sports Illustrated, Time Out New
York, Byrdie, and Forbes Health.
For more information about Blink, visit us here.
About PureGym
PureGym is a leading global gym operator, with around two
million members across more than 600 gyms in six countries. PureGym
operates corporate owned gyms in the UK, Denmark, Switzerland and the USA (the latter under the Pure Fitness brand)
in addition to 20 sites operated by a franchise partner in
Saudi Arabia and the UAE (under
the PureGym Arabia brand).
PureGym was launched in the UK in 2009 where it pioneered the
model for affordable, flexible, high-quality fitness clubs and is
now the clear leader in the UK market. Typically, its members pay
monthly and have no contractual commitment. Most of its gyms are
open 24/7 and offer a full range of fitness equipment, including
cardiovascular equipment, fixed-resistance and free weights as well
as classes. PureGym is jointly owned by Leonard Green & Partners, KKR and over 100
members of the Group's management team.
As of 30 June 2024, Pure Gym had
387 gyms in the UK, 161 gyms in Denmark, 45 gyms in Switzerland, 3 gyms in the USA and 20 franchise gyms in the Middle East (18 in Kingdom of Saudi Arabia and 2 in United Arab Emirates).
PureGym is actively franchising in the Middle East and looking for partners in other
markets. In the USA PureGym is
seeking franchise partners operating under its PureFitness brand.
More information can be found at
https://www.purefitness.com/franchise/.
Contacts:
Blink Fitness:
Rachel
Rosenblatt / Rose Temple
FTI Consulting
BlinkComms@fticonsulting.com
PureGym:
Robert
Morgan / Rachel
Miller
Sanctuary Counsel
puregym@sanctuarycounsel.com
JTRE Holdings LLC:
Chris
Miller
cm@jtreholdings.com
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SOURCE Blink Fitness