WeightWatchers is seeking Chapter 11 bankruptcy protection, aiming to wipe out $1.15 billion in debt as it pivots further into telehealth. The company, officially known as WW International, said nearly 75% of its debt holders are backing the restructuring and it expects to emerge from bankruptcy in about 45 days, the AP reports. WeightWatchers members will not be affected, CNN reports. Founded more than six decades ago, WeightWatchers has faced challenges in recent years as the weight-loss industry evolves. In 2023, the company shifted focus, acquiring Sequence—now WeightWatchers Clinic—for $106 million. The clinic offers telehealth services and helps members access popular prescription weight-loss drugs like Ozempic and Wegovy.
The transition hasn't come without difficulty. The company reported Tuesday that first-quarter revenue dropped 10%. But revenue from clinical subscriptions (weight-loss drugs) rose 57% year-over-year, reaching $29.5 million. Leadership has also changed amid the shakeup. After former CEO Sima Sistani's departure last fall, Tara Comonte—previously a board member and Shake Shack executive—stepped in and now holds the top job. Comonte said Tuesday that WW is committed to "science-backed, holistic" health solutions as the national conversation shifts toward long-term wellbeing. WeightWatchers stock has traded below $1 since February and fell to 39 cents in after-hours trading following the bankruptcy announcement. (Oprah Winfrey also recently left the WeightWatchers board.) (This content was created with the help of AI. Read our AI policy.)
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