Blink Fitness, a budget gym chain owned by Equinox, has declared Chapter 11 bankruptcy as of Monday.

The company, which has over 100 locations in seven states, stated in a release that it is looking for a buyer and plans to keep its operations running after obtaining $21 million in new funding.

Another fitness chain goes bankrupt

The Chapter 11 bankruptcy documentation was submitted in Delaware court, showing assets and debts ranging between $100 million and $500 million, with approximately $280 million in liabilities.

Blink Fitness was established in 2011 and promotes itself as an affordable gym option. It operates in states including California, Illinois, Massachusetts, New Jersey, New York, Pennsylvania, and Texas, offering membership fees from $15 to $39 monthly.

On Monday, the company reported that it has seen “consistent improvement in its financial status over the last two years, with nearly a 40% rise in revenue.”

However, Blink Fitness President and CEO Guy Harkness stated that they have focused on “fortifying Blink’s financial structure and preparing the business for future success” in recent months.

In the wake of the COVID-19 pandemic, many gyms were forced to close, leading to bankruptcy filings from other fitness chains like 24 Hour Fitness, Gold’s Gym, and Town Sports International.