Bankruptcy shocks fans of brand that dominated the world for 60 years after humble kitchen start

Daily Mail​

07-05-2025

WeightWatchers has finally filed for bankruptcy after months of negotiations with its lenders.
The weight loss company has been struggling under $1.6 billion of debt after losing business to the new generation of weight loss drugs such as Ozempic and Wegovy.
The company, now known as WW, has already negotiated a deal with its creditors so will enter Chapter 11 bankruptcy with a pre-packaged filing.
This should allow the company to move out of bankruptcy quickly and keep its business running as normal in the process.
In response to the rise of Ozempic and other drugs, WW will invest more in its own clinical business offering customers a chemical solution to shedding pounds faster, the company said in its filings.
However, CEO Tara Comonte said the company is not giving up entirely on its legacy business based around selling low-calorie foods, diet and exercise advice to overweight people.
Weight Watchers was founded in 1963 by Jean Nidetch, a housewife from Queens, New York.
It all began in her kitchen, where she invited a group of friends over to talk about dieting and offer each other support.
At the time, Jean was following a diet prescribed by the New York City Board of Health, but she realized that support and accountability made all the difference.The company will be taken over by the institutional investors that own its debts.
The company has influenced millions of people in the U.S. and around the world, selling diet meals, magazines, books, and memberships to its weight-loss programs.
Over the years, celebrities like Oprah Winfrey and Jessica Simpson have helped market the brand. In 2014, Simpson appeared in ads at age 33, showing off her post-baby weight loss in a form-fitting black dress.
Alarm bells first rang in March 2023, when shares hit an all-time low amid declining sales. The situation worsened when longtime investor Winfrey — who admitted to using weight-loss medication — stepped down from the board.
Since then, the stock has continued its downward spiral. On Wednesday, WW's market value stood at just $63.4 million — a shadow of its $6.7 billion peak.
By comparison, Ozempic-maker Novo Nordisk is valued at around $297 billion.
Last month, WW took the remaining $121 million from a $175 million loan due in April 2026. Bosses said it was for financial flexibility rather than immediate bills.
As well as the $175 million debt due next year, the company also has more than $1.4 billion of loans and bonds due in 2028 and 2029.
WeightWatchers became a byword for the traditional weight-loss industry - but it is now struggling as Americans turn to weight-loss drugs like Ozempic
WW's stock will be largely wiped out in the takeover, but existing shareholders will retain nine percent, the Wall Street Journal reported. This will cut the company's debt by around $1 billion.
WW and its lenders both declined to comment on the record when approached by DailyMail.com.
Pharmaceutical companies like Novo Nordisk and Eli Lilly took the world by storm last year with a new generation of so-called GLP-1 diet products - Ozempic, Wegovy and Zepbound.
The drugs were widely effective and soon became popular among Americans and others around the world wanting to lose weight.
Ozempic has already been blamed for the demise of another legacy diet brand.
Jenny Craig, a household name since its launch in the 1980s, announced in May 2023 it was shutting down after drowning in debt.
Last year, WW announced its own weight-loss injection in an attempt to compete with the likes of Ozempic.
It was considered a surprising move for a company that has built its global success on the premise that healthy controlled eating and iron willpower are the key to achieving sustainable weight loss.
However, the move has not resulted in the hoped for turnaround - with WW chief executive Sima Sistani stepping down after two years at the helm.
During Sistani's tenure, WeightWatchers acquired the telehealth platform Sequence, now known as WeightWatchers Clinic, expanding into obesity drug prescriptions.
Board member Tara Comonte, who will lead the group on a temporary basis until a new boss is found, said: 'I am confident that we have the right team in place and are focused on the right strategies to drive growth.'