In this aerial view, customers leave a Planet Fitness gym in Richmond, California, on May 9, 2024.
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planet fitness The company lost its bid in bankruptcy court to acquire budget fitness chain Blink Holdings, according to court documents seen by CNBC.
Planet Fitness placed a last-minute bid during a 48-hour challenge window earlier this month. The company lost out to UK-based private fitness chain PureGym in a bankruptcy auction before two higher bids were made.
Late Tuesday, the Delaware Bankruptcy Court formally accepted PureGym’s $121 million bid, which originally won the auction in late October.
U.S. Bankruptcy Judge J. Kate Stickles of the U.S. Bankruptcy Court for the District of Delaware said at a hearing on Tuesday that PureGym’s proposal would avoid antitrust risks. The company only operates three locations in the United States, entering the country for the first time in 2021.
PureGym’s offer (which assumes Blink’s liabilities) also includes the 60 Blink fitness centers still operating in New York and New Jersey.
“PureGym is committed to ensuring continuity of service to Blink members in New York and New Jersey by maintaining the high-quality fitness experience that Blink members have come to expect,” said Humphrey Cobbold, CEO of PureGym. originally made bid September.
“The U.S. fitness market is the largest and most dynamic market in the world. We are very excited about the size of the opportunity there and the opportunity to customize and apply our proven model,” he said.
On August 12, 2024, there was a Blink Fitness gym on Flatbush Avenue in the Flatbush neighborhood of Brooklyn, New York City.
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People familiar with the matter told CNBC that Planet Fitness’s initial offer was rejected in part because of antitrust concerns because the company, which is worth about $6.8 billion, already owns more than 2,000 clubs in the United States.
They added that Planet Fitness’ offer would further delay the completion of the deal. Stickles said that by accepting PureGym’s offer immediately and avoiding antitrust issues, it would allow Blink to continue operating rather than disbanding while a deal is negotiated in court.
Planet Fitness did not respond to CNBC’s request for comment.
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