NEW YORK — WeightWatchers has announced plans to file for Chapter 11 bankruptcy protection, primarily to restructure and eliminate its $1.15 billion debt. The move comes as the company pivots toward becoming a leading provider of telehealth services. Supported by nearly three-fourths of its debt holders, the company hopes to emerge from bankruptcy within 45 days or potentially sooner.
Established over six decades ago, WeightWatchers has faced significant challenges in recent years. As part of its strategy to adapt to changing market demands, the company recently ventured into the prescription weight loss medication sector. Key to this shift was its $106 million acquisition of Sequence, which has been rebranded as WeightWatchers Clinic. This telehealth service offers users access to prescriptions for popular weight-loss drugs such as Ozempic, Wegovy, and Trulicity.
In its latest financial report, the company disclosed a 10% decline in revenue for the first quarter, with an adjusted loss of 47 cents per share. Despite these difficulties, clinical subscription revenue—primarily from weight-loss medications—surged by 57% compared to the previous year, reaching $29.5 million.
September marked a significant leadership change for WW International. Following the resignation of CEO Sima Sistani, the company appointed Tara Comonte as interim chief executive. Comonte, a current member of the WeightWatchers board and a former executive at Shake Shack, emphasized the company’s commitment to providing reliable, science-backed health solutions. In her statement, she highlighted the importance of community support and the need for lasting results in the evolving conversation around weight management.
Shares of WeightWatchers have struggled, trading below $1 since early February. Following the bankruptcy announcement, the stock price experienced a drastic decline, plummeting by half to 39 cents in after-hours trading. The company filed for bankruptcy in the U.S. Bankruptcy Court for the District of Delaware, marking a pivotal moment in its ongoing efforts to revitalize its business model and meet emerging consumer needs.