Fitness Industry Shake-Up: Planet Fitness Makes a Play for Blink Holdings
The fitness industry is abuzz with news that Planet Fitness, a leading chain with over 2,000 clubs across the US, is making a bid to acquire Blink Holdings, a budget-friendly fitness chain that filed for bankruptcy protection in August. This move comes after Planet Fitness lost out to UK-based PureGym in a previous bankruptcy auction.
A Second Chance for Planet Fitness
Planet Fitness, valued at approximately $6.8 billion, is making a second attempt to expand its market share by acquiring Blink’s assets, including over 100 fitness centers. The US chain submitted two proposals, one offering $142 million and the other $155 million, with varying conditions to address antitrust concerns.
Antitrust Concerns Hold Up Initial Bid
Initially, Planet Fitness’s bid was rejected due to concerns over antitrust implications, given its significant market share in the fitness club industry. According to Piper Sandler estimates, Planet Fitness already owns a substantial portion of the market. To overcome this hurdle, the company has proposed making select regulatory filings to address antitrust concerns in advance.
PureGym’s Previous Win
Last week, PureGym won the bankruptcy auction for Blink and its assets, including 60 gyms in New York and New Jersey, with a bid of $121 million. This acquisition would have expanded PureGym’s US operations, which it entered in 2021. However, Planet Fitness is now attempting to outbid PureGym and secure the deal.
Deliberations Ahead
A Delaware bankruptcy court will hold a hearing on Wednesday to consider Planet Fitness’s new bids. The outcome will determine the fate of Blink Holdings and the future of the fitness industry landscape.
What’s at Stake
The acquisition of Blink Holdings would significantly impact the fitness industry, potentially altering the competitive landscape and market dynamics. As the situation unfolds, industry insiders and observers will be watching closely to see which company ultimately emerges victorious.
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