Planet Fitness loses 11th hour bid to acquire bankrupt Blink
Justin Sullivan | Getty Pictures
Planet Health misplaced its instruct in financial distress court to gain budget fitness chain Blink Holdings, in accordance to court filings considered by CNBC.
Planet Health placed its competing eleventh hour bids early this month throughout a Forty eight-hour scenario window. The 2 larger bids got here after it misplaced out in a financial distress auction to U.K.-primarily based totally, privately held fitness chain PureGym.
Gradual Tuesday, Delaware’s financial distress court formally celebrated PureGym’s $121 million supply, which first and valuable gained at auction in leisurely October.
J. Kate Stickles, financial distress pick in the U.S. Financial slay Court of Delaware, acknowledged in Tuesday’s listening to that PureGym’s supply would keep a long way off from antitrust dangers. The firm simplest operates three locations in the U.S., which it first entered in 2021.
PureGym’s supply, assuming Blink’s liabilities, also comes with 60 of Blink’s fitness facilities peaceful working in Novel York and Novel Jersey.
“PureGym is committed to making certain continuity of provider for Blink’s members in Novel York and Novel Jersey by affirming the head of the variety fitness journey that Blink members possess come to request,” acknowledged PureGym CEO Humphrey Cobbold when the firm first and valuable made the instruct in September.
“The American fitness market is the largest and most dynamic in the sector. We’re incredibly furious by the scale of opportunity and the probability to tailor and be conscious our confirmed model there,” he acknowledged.
A Blink Health gymnasium is seen on Flatbush Avenue in the Flatbush neighborhood of the Brooklyn borough in Novel York City on Aug. 12, 2024.
Michael M. Santiago | Getty Pictures
Planet Health’ initial instruct was once rejected in segment thanks to antitrust concerns, as the roughly $6.8 billion firm already owns bigger than 2,000 club in the U.S., sources familiar with the topic suggested CNBC.
Planet Health’ supply would possess extra delayed closing the deal, they added. By accepting PureGym’s supply now and averting antitrust components, Stickles acknowledged it would possibly perchance well enable Blink to continue to feature somewhat than dissolve as a deal was once negotiated in court.
Planet Health did no longer answer to CNBC’s quiz for comment.