The legal portion of the Larry Nassar scandal at USA Gymnastics may soon be over.
USA Gymnastics President Kerry Perry said representatives for both the organization and athletes who were abused by Nassar — a former national team doctor who abused hundreds of women under the guise of medical treatment — met last week. Perry called the mediation talks "not only productive but continuing to move us down the path of resolution."
Perry made the remarks on Sunday in her first extended question-and-answer session with reporters since taking over last December. Her public silence during the first 260 days of her tenure has drawn the ire of Nassar victims, including reigning Olympic champion Simone Biles, who last week it was time for Perry to speak up. Perry said she respected Biles' opinion and called the kind of changes the organization is making in the wake of the scandal "scary."
"I want her and all of our athletes to know we have their best interests at heart," Perry said. "I would hope that they know that I and all of the leaderships have their best interests in mind."
Perry says she spent her first eight months on the job trying to get a handle on the landscape within USA Gymnastics and allowed it's difficult to communicate with survivors on an individual level due to the ongoing legal situation. Perry added the goal in the end is to have "our survivors standing side by side with our organization."
Perry said USA Gymnastics has implemented 86 percent of the more than 70 recommended changes suggested by an independent review spearheaded by former federal prosecutor Deborah Daniels. The changes include making the method to reporting abuse easier and creating an electronic system that allows the reports to be tracked.
Though several high-profile sponsorship deals have lapsed as part of the Nassar fallout, Perry says she is "very confident" USA Gymnastics will continue to "grow" and said potential partners are "looking forward to the changes we're making."
USA Gymnastics is also in the process of finding a new training facility after the organization pulled out of its agreement to buy the Karolyi Ranch north of Houston, a decision it only made after the urging of Biles, who pointed out it was one of the places where Nassar abused victims. Perry said the new center will be a "symbolic fixture that represents a lot of our mission and culture."
There's no timetable on when any final decision will be made, fitting for an organization that finds itself caught between addressing the past and trying to move into the future.
The leadership talks about becoming more transparent, but until the legal process wraps up, Perry will continue to be limited by what she can and cannot say. She did her best to stick to her talking points during the 22-minute session and failed to directly answer several questions, including why USA Gymnastics did not include Nassar survivors during any portion of the US Championships this weekend at the new Boston Garden.
While Perry insists on staying behind the scenes, others associated with the organization want her to take a more prominent role going forward.
"Going into it, our expectation was (she was) going to be the face of USA Gymnastics and be a positive change and a positive force," said 2005 world champion Chellsie Memmel, who was on the committee who selected Perry to take over for Steve Penny, who resigned under pressure in March, 2017. "So to me, that's been a little bit disappointing and I'd like to see more. Just keep going and see what happens."
NEW YORK (AP) — Gym operator Blink Fitness has filed for Chapter 11 bankruptcy protection.
Blink, an Equinox-owned chain with more than 100 locations, said Monday that it was filing for bankruptcy to help facilitate a sale of the business. The New York-based company added that its gyms remain open — with Blink telling its members that it anticipates “limited impact on day-to-day operations” through the process.
Also on Monday, Blink said it received a commitment for $21 million in new financing from existing lenders to help support its ongoing operations, pending court approval. Employees wages and vendor payments are expected to continue without interruption.
Founded in 2011, Blink has long billed itself as an affordable gym “for every body.” Membership plans range from about $15 to $39 per month plus maintenance fees, competitive with rates from larger rivals like Planet Fitness and LA Fitness. Blink is a smaller chain that operates in seven U.S. states: New York, New Jersey, Pennsylvania, California, Illinois, Massachusetts and Texas.
In its Chapter 11 petition, which was filed in Delaware bankruptcy court, Blink listed both assets and liabilities in the $100 million to $500 million range. Total debts for Blink and its affiliates filing for Chapter 11 amount more than $280 million, according to a court affidavit from Chief Restructuring Officer Steven Shenker Monday, which also suggests the debtors may reject leases of certain facilities that are no longer in operation as part of wider cost-cutting efforts.
The company said Monday that it has seen “continuous improvement” in recent financial performance, with revenue increasing by 40% over the last two years.
Blink also pointed to recently-announced efforts to boost member experiences in its most popular gyms. Monday's bankruptcy filing arrives just months after the company announced a multimillion-dollar investment that included upgrading 30 of its most-trafficked locations with more than 1,700 pieces of new equipment.
In a statement, Blink Fitness President and CEO Guy Harkless said that the company's leadership determined that using a court-supervised process to facilitate a sale “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 did not immediately provide many details about the sale it's pursuing. The chain is currently owned by luxury fitness company Equinox Group — whose brands also include Soul Cycle, Pure Yoga and Equinox Fitness Clubs. The membership prices of those clubs are far more expensive than Blink's rates.
Equinox is not listed as a debtor in Monday's Chapter 11 documents and is not expected to file its own bankruptcy petition, Shenker notes.
Blink's bankruptcy filing arrives as much of the fitness industry works to bounce back pandemic-era losses. Gyms and workout studios from were among the hardest hit during the beginning days of COVID-19, as lockdowns shuttered or significantly limited many operations — including Blink, which was forced to temporarily close all of its gyms at the height of the pandemic, the company's bankruptcy documents note.
But gyms that made it through the worst have seen some stability since. Visits to major fitness chains were up nearly every week between January and April of this year compared to 2023's numbers, according to recent data from Placer.ai, which tracks retail and foot traffic.
FILE — People line up outside the Blink Fitness gym, March 26, 2021, in the Lower East Side neighborhood of New York. (AP Photo/Mary Altaffer, File)
