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Conway Gittens: I’m Conway Gittens reporting from the New York Stock Exchange. Here’s what we’re watching on TheStreet today.
There were green arrows across the board with the S&P 500 and the Nasdaq up for a third day in a row. A report showing a tame rise in July producer prices bolstered chances for a September interest rate cut by the Federal Reserve.
Wall Street is looking ahead to the Consumer Price Index, which is due on Wednesday.
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Turning to corporate headlines: Blink Fitness has filed for bankruptcy.
President and CEO Guy Harkless said in a statement, “After evaluating our options, the Board and management team determined that using the court-supervised process to optimize the Company’s footprint and effectuate a sale of the business is the best path forward for Blink and will help ensure Blink remains the destination for all people seeking an inclusive, community-focused gym.“
Blink, which is owned by luxury gym Equinox, said it will close locations during bankruptcy. It did not, however, detail how many of its 101 clubs will be impacted.
Blink’s restructuring means trouble for lower-priced gym options. Its monthly memberships range from 15 bucks to 45 bucks compared to the national average of $40 to $70, excluding fees.
Blink’s bankruptcy comes as the fitness industry faces three challenges. First, consumers are cutting back on non-essential spending like gym memberships. Second, the roaring success of GLP-1 weight-loss drugs is reshaping the fitness world. And finally, there are still lingering effects from the pandemic. Blink said it is still trying to make up for late rent payments it didn’t make during that tumultuous time. 24 Hour Fitness and Gold’s Gym went bankrupt during that period and the industry saw 10,000 locations close permanently.
That’ll do it for your Daily Briefing. From the New York Stock Exchange, I’m Conway Gittens with TheStreet.
Related: Popular gym chain files Chapter 11 bankruptcy, closing locations
