WeightWatchers files for bankruptcy - what went wrong?
WeightWatchers has filed for bankruptcy.
The diet brand, which was founded more than 60 years ago, said on Tuesday that it was filing to write off $1.15bn of debt and to focus on transitioning into a remote telehealth services provider.
Founded in 1963 by American businesswoman Jean Nidetch, the company aims to help members monitor their diets by using a points system, with the goal to try and avoid foods with higher points.
At its peak in 2018, WeightWatchers had 4.5 million subscribers, and its stock traded as high as $100 (£75). But it has since lost value and rebranded to become WW International.
So what is behind the slimming down of WeightWatchers?
Its overall revenue for the 2024 financial year was $786m (£592m), down 11.7% on the previous year.
The report said the decline was "primarily driven" by recruitment challenges and the closure of the consumer products business.
While the company also sells a range of ready meals, snacks and low-calorie wines, it has been primarily focused on subscribers.
Big names leaving the brand
In September, WW International CEO Sima Sistani resigned, and Tara Comonte was named interim chief executive.
In a statement on Tuesday, she said: "As the conversation around weight shifts toward long-term health, our commitment to delivering the most trusted, science-backed, and holistic solutions -grounded in community support and lasting results - has never been stronger, or more important."
In another blow to the company, Oprah Winfrey, a long-time ambassador, quit the WeightWatchers board last year.
In March 2024 the television personality announced she had quit ahead of the airing of a special programme titled An Oprah Special: Shame, Blame And The Weight Loss Revolution, saying she did not want a "perceived conflict of interest," as she wanted to publicly discuss her use of weight-loss medication.
She said she had donated all of her shares in the company to the Smithsonian Museum Of African American History And Culture.
Targeting the younger generation
The company has also struggled to attract younger customers.
In an attempt to do so in 2018, WeightWatchers bought the app Kurbo.
A year later, it launched the platform to the public, aimed at helping children aged between eight and 17 create healthy habits.
The app followed a paediatric weight control programme made by Stanford University and offered 15-minute personal training sessions as a way to log food intake and recipes.
However, it was met with criticism by celebrities, including actress and activist Jameela Jamil, nutritionists and members of the public, who raised concerns it would make children obsessed with weight and counting calories.
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The influence of weight loss injections
WeightWatchers has also been struggling to keep up as a key player in the industry due to the introduction of effective weight loss drugs, including Wegovy, created by Danish pharmaceutical company Novo Nordisk.
The drug soared in popularity by offering a quicker fix to obesity, which is a growing health concern around the globe.
Some people also take Ozempic to lose weight.
The medication, also used to treat Type 2 diabetes, slows down how quickly food is digested and can reduce appetite, making people eat less.
Both Ozempic and Wegovy are different brand names for the same injectable drug, semaglutide. The drug works by making you feel fuller for longer.
To try and compete with the booming industry, WeightWatchers bought subscription-based telehealth platform Sequence in 2023 to expand into obesity drug prescriptions.
In its latest earnings report on Tuesday, WeightWatchers' first-quarter revenue declined 10% while its loss on an adjusted basis totalled 47 cents per share.
However, it clinical subscription revenue - or weight-loss medications - jumped 57% year over year to $29.5m.
WW International has said it expects to emerge from bankruptcy within 45 days, if not sooner.
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