Pinnacle Holdings US, a subsidiary of Leeds-based PureGym Group, announced that it has entered into an asset purchase agreement (APA) with Blink Fitness which on August 12, 2024, filed for protection under Chapter 11 of the U.S. Bankruptcy Code in the District of Delaware.
The agreement covers Blink’s corporate operations and a substantial portion of Blink Fitness’s locations with a focus on New York and New Jersey.
PureGym said its “Stalking Horse Bid” status positions it as a frontrunner in the upcoming auction process for acquisition of the assets of Blink Fitness
As of June 30, 2024, Pure Gym had 387 gyms in the UK, 161 gyms in Denmark, 45 gyms in Switzerland, three gyms in the US and 20 franchise gyms in the Middle East.
Blink Fitness currently has 67 gym locations with ongoing operations in the states of New York and New Jersey and has a corporate office in New York.
“The APA is subject to court approval and gives PureGym ‘stalking horse bidder’ status ahead of an auction, which may include other bids, scheduled to take place on 28 October,” said PureGym.
“The base purchase price in the bid is $105 million in cash, with adjustments for items such as property tax, deferred rent, and customer credits.
“PureGym also intends to assume liabilities including those under assumed agreements, customer credits, and certain employee-related costs. The agreement remains subject to higher or otherwise better offers, Court approval, and other customary conditions.”
PureGym CEO Humphrey Cobbold said: “We have submited a bid for a substantial portion of Blink Fitness’s assets and are pleased to have secured ‘stalking horse’ status signifying our commitment and intent.
“Since it was founded in 2009 PureGym has built market leadership in the UK and Denmark and established material businesses in other global markets.
“We have long admired Blink Fitness for the premium and affordable fitness experience that the team has delivered, and their commitment to helping members improve their life through fitness …
“PureGym is committed to ensuring continuity of service for Blink’s members in New York and New Jersey by maintaining the high-quality fitness experience that Blink members have come to expect.
“As part of our strategic expansion into the U.S. market, PureGym plans to invest further in these gyms to enhance the customer fitness experience through facility upgrades that align with PureGym’s mission to inspire a healthier world by providing accessible, high-quality fitness options.
“This agreement to be the stalking horse bidder in the court-supervised sale process also lays the foundation for PureGym to successfully expand its footprint in the U.S.
“Should PureGym be successful in the auction at the end of October, Blink Fitness’s assets will, we are confident, offer a significant step forward for our ambitions in the USA where we started operating in 2021.”
Blink Fitness CEO Guy Harkless said: “We are pleased to reach this agreement with PureGym, which marks an important step in our sale process.
“For many years, Blink has provided our members with an inclusive, community-focused gym destination. As we have worked this year to reinvigorate our most popular locations and elevate our member experience, we are encouraged by PureGym’s interest in the Blink business model and strategy, and their belief in Blink’s mission to democratize fitness for all …
“We are confident that Blink’s foundation as an affordable fitness brand will provide a strong base for new ownership to build upon. We know how important fitness is to those who choose to work out at Blink, and we continue to go the extra mile for all of our members.
“On behalf of the management team, I want to thank the entire Blink Nation for their continued focus, commitment, and hard work that has continued unabated throughout the filing period.”