Planet Fitness (PLNT, Financials) lost its attempt to acquire the assets of Blink Holdings, a bankrupt fitness chain owned by Equinox Group, after a Delaware bankruptcy court rejected its final bids, according to court documents.
During a 48-hour "challenge window," Planet Fitness made two last-minute proposals for the UK-based Blink last week, one valued at $142 million with a $28.4 million deposit and a second for $151 million with a $31 million deposit. While the second offer exceeded PureGym's $121 million offering, the first did not answer antitrust questions and needed papers to settle such issues.
Since PureGym now runs just three sites in the United States, bankruptcy Judge J. Kate Stickles decided that a combination between PureGym and Blink would not generate anticompetitive problems. By contrast, the attempt of Planet Fitness to increase its U.S. presence was considered as perhaps anticompetitive.
Originally trying to buy Blink's assets in the bankruptcy auction, Planet Fitness was turned down by the court because of possible antitrust concerns related to the fitness behemoth's large U.S. footprint. Accepting PureGym's offer helps Blink to avoid delays linked to antitrust laws and get on with business.
Aimed at creating an inclusive environment, Blink Fitness first positioned itself as a reasonably priced choice with monthly rates ranging from $17 to $22. But the effect of pandemic-related closures, along with growing debt of around $280 million and limited discretionary spending, caused the business to declare bankruptcy in August.
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