Latest news with #DorothyMa
Bloomberg
10-05-2025
- Health
- Bloomberg
GLP-1 Drugs and TikTok Influencers Tipped Over WeightWatchers
Welcome to The Brink. I'm Dorothy Ma, a reporter in New York, where I followed the travails of WeightWatchers. We also have news on Brazilian airline Azul and Korean insurer Lotte. Follow this link to subscribe. Send us feedback and tips at debtnews@ As Americans flock to do-it-yourself weight management programs, often with the help of GLP-1 drugs, one casualty emerged: the once-popular WeightWatchers has gone bankrupt.
Mint
06-05-2025
- Business
- Mint
WeightWatchers Files Bankruptcy as GLP-1 Drugs Reshape Market
WeightWatchers, known for its diet programs once endorsed by celebrities including Oprah Winfrey, has filed for bankruptcy after struggling to compete with weight-loss drugs like Ozempic. The company —which rebranded to WW International Inc. — filed a prepackaged Chapter 11 petition to execute a lender-backed plan that would cut about $1.15 billion in debt from its balance sheet. It expects to complete the reorganization in about 45 days. WeightWatchers said the restructuring plan will 'significantly reduce' its debt obligations. The proposed restructuring must be approved by a bankruptcy judge. WeighWatchers tried to ride the weight-loss drugs wave by offering a few on its platform, but found it challenging to convince clients that its programs were still worth their time alongside the medications. The company is seeking court protection in Delaware after Bloomberg News reported last month that WeightWatchers was preparing to file in the coming weeks following a debt-restructuring agreement with the majority of its lenders. Prepackaged bankruptcies generally allow companies to exit Chapter 11 quickly and without disruption to their business or unsecured creditors. WeightWatchers said the restructuring plan would retain $175 million previously drawn by the company from its revolving credit facility, reduce its annual interest expense by about $50 million and extend debt maturities. WeightWatchers, which listed assets and liabilities each of between $1 billion and $10 billion, reported revenue of $186.6 million in the first quarter of the year, a 9.7% drop compared to a year before, dragged down by headwinds in the Behavioral business due to lower incoming subscribers and recruitment challenges. The company also reported a 14.2% decrease on its end of period subscribers for the quarter, and a net loss of $72.6 million. It didn't provide guidance for the full 2025 fiscal year. The company will host a call with investors on Tuesday to explain the debt-cutting agreement with creditors. With assistance from Dorothy Ma. This article was generated from an automated news agency feed without modifications to text.
Yahoo
21-02-2025
- Business
- Yahoo
Hooters in Talks to Prepare a Bankruptcy Filing in Coming Months
(Bloomberg) -- Hooters of America is working with creditors on a plan to restructure the business through bankruptcy court in the coming months, according to people with knowledge of the arrangements. Trump to Halt NY Congestion Pricing by Terminating Approval Trump Targets $128 Billion California High-Speed Rail Project Airbnb Billionaire Offers Pre-Fab Homes for LA Fire Victims Sorry, Kids: Disney's New York Headquarters Is for Grown-Ups Trump Asserts Power Over NYC, Proclaims 'Long Live the King' The casual dining chain is working with law firm Ropes & Gray to ready a filing, said the people, who added the plans are not final and asked not to be identified discussing private preparations. The court process would likely begin within the next two months, the people said. The company was working to address its debt load with its lawyers as well as turnaround advisers from boutique firm Accordion Partners, Bloomberg previously reported. Some of Hooters' debtholders have tapped Houlihan Lokey Inc. for advice. Representatives for Hooters, Accordion Partners and Ropes & Gray didn't respond to requests for comment. A representative for Houlihan declined to comment. Hooters has faced liquidity issues as foot traffic has declined and has shuttered several locations. The chain sold about $300 million in asset-backed bonds in 2021, according to data compiled by Bloomberg. The asset-backed bonds are packaged as whole-business securitizations — through which a company pledges most of its assets, including franchise fees, as collateral — a product popular among restaurant chains, fitness clubs and other businesses with franchised stores. --With assistance from Dorothy Ma. Japan Perfected 7-Eleven. Why Can't the US Get It Right? How Med Spas Conquered America Meet Seven of America's Top Personal Finance Influencers The Undocumented Workers Who Helped Build Elon Musk's Texas Gigafactory Crypto, Inflation, Bonds: Your Investment Guide to a Risky Year ©2025 Bloomberg L.P. Sign in to access your portfolio
