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Business Journals
08-05-2025
- Business
- Business Journals
WeightWatchers files for bankruptcy
Story Highlights WW International filed for bankruptcy to eliminate $1.15 billion in debt while continuing operations. The company has pivoted toward clinical weight loss solutions, including GLP-1 drugs. Leadership and strategic shifts have reshaped WW in recent years. WW International (NASDAQ: WW) has declared bankruptcy to eliminate $1.15 billion in debt, a move the company said will position WeightWatchers for long-term growth and success. WeightWatchers said operations will continue with no impact on its more than three million members worldwide. UNLOCK EVERY ARTICLE Get Started For Only $9 GAIN ACCESS TO EVERY LOCAL INSIGHT, LEAD AND MORE! Become A Member The 60-year-old company, developed around a behavior modification and community support model, pivoted in April 2023 to also offer clinical weight loss solutions including GLP-1 drugs, acquiring subscription telehealth platform Sequence (now WeightWatchers Clinic) for $132 million. The global market for GLP-1 drugs like Novo Norodisk's Ozempic and Wegovy and Eli Lilly's Zepbound is estimated to grow from $49.3 billion in 2025 to $157.5 billion by 2035. Sima Sistani, who was CEO of WW during the Sequence acquisition, said at the time that WeightWatchers was at a 'pivotal point' and that offering clinical interventions was 'a natural next step' for the weight loss company. In May 2023, competitor Noom followed suit, announcing that it was launching a program that included access to a suite of telehealth services and weight-loss drugs along with its psychological tools for weight loss. Oprah Winfrey, a long-time WW spokesperson and member of the company's board of directors since 2015, disclosed in 2023 that she was taking a weight-loss medication and resigned down from the WW board in February 2024 to avoid any appearance of conflict of interest. Winfrey had acquired a 10% stake in WeightWatchers in 2015, but sold most of her shares in 2023, later donating the rest to the National Museum of African American History and Culture. Sistani left the company in September 2023 after second-quarter results showed net income down 54.2% to $23.3 million and a 6.1% drop in subscribers. Current CEO Tara Comonte, then a member of the WW board, stepped in the fill the top role on an interim then permanent basis. Comonte was previously CEO of TMRW Life Sciences, a technology company in the reproductive health sector. "The decisive actions we're taking today, with the overwhelming support of our lenders and noteholders, will give us the flexibility to accelerate innovation, reinvest in our members, and lead with authority in a rapidly evolving weight management landscape," Comonte said. There has been an increasing push for employers to offer obesity treatments, including anti-obesity medications, as part of their health plans. The Alliance for Women's Health and Prevention called in an open letter to employers in March for coverage for all types of care, from medications to bariatric surgery and nutritional guidance. But some employers have pushed back, citing the high cost of GLP-1 medications. WeightWatchers has launched a dedicated web page for members to get more information about the court-supervised restructuring process at
Sky News
08-05-2025
- Business
- Sky News
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. 1:22 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.
Yahoo
08-05-2025
- Business
- Yahoo
WeightWatchers files for bankruptcy protection to eliminate over $1 billion in debt
WeightWatchers said Tuesday it is filing for Chapter 11 bankruptcy protection to eliminate $1.15 billion in debt and focus on its transition into a telehealth services provider. Parent WW International Inc. said it has the support of nearly three-quarters of its debt holders. It expects to emerge from bankruptcy within 45 days, if not sooner. WeightWatchers, which was founded more than 60 years ago, has struggled recently. In 2023, the company moved into the prescription drug weight loss business — particularly with the $106 million acquisition of Sequence, now WeightWatchers Clinic, a telehealth service that helps users get prescriptions for drugs like Ozempic, Wegovy and Trulicity. Its latest earnings report Tuesday showed that first-quarter revenue declined 10% while its loss on an adjusted basis totaled 47 cents per share. However, clinical subscription revenue — or weight-loss medications — jumped 57% year over year to $29.5 million. In September, WW International CEO Sima Sistani resigned, and the New York company named Tara Comonte, a WeightWatchers board member and former Shake Shack executive, interim chief executive. Comonte, now CEO, said in a statement Tuesday that, '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.' Shares of the company have traded at under $1 since early February. In after-hours trading, the stock plunged by half to 39 cents. The bankruptcy filing was made in U.S. Bankruptcy Court for the District of Delaware. More national news Read the original article on MassLive.
Fast Company
07-05-2025
- Business
- Fast Company
WW International stock tumbles as WeightWatchers files for Chapter 11 bankruptcy protection
WeightWatchers said Tuesday it is filing for Chapter 11 bankruptcy protection to eliminate $1.15 billion in debt and focus on its transition into a telehealth services provider. Parent WW International Inc. said it has the support of nearly three-quarters of its debt holders. It expects to emerge from bankruptcy within 45 days, if not sooner. WeightWatchers, which was founded more than 60 years ago, has struggled recently. In 2023, the company moved into the prescription drug weight loss business — particularly with the $106 million acquisition of Sequence, now WeightWatchers Clinic, a telehealth service that helps users get prescriptions for drugs like Ozempic, Wegovy and Trulicity. Its latest earnings report Tuesday showed that first-quarter revenue declined 10% while its loss on an adjusted basis totaled 47 cents per share. However, clinical subscription revenue — or weight-loss medications — jumped 57% year over year to $29.5 million. In September, WW International CEO Sima Sistani resigned, and the New York company named Tara Comonte, a WeightWatchers board member and former Shake Shack executive, interim chief executive. Comonte, now CEO, said in a statement Tuesday that, '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.' Shares of the company have traded at under $1 since early February. In after-hours trading, the stock plunged by half to 39 cents. The bankruptcy filing was made in U.S. Bankruptcy Court for the District of Delaware.
Winnipeg Free Press
07-05-2025
- Business
- Winnipeg Free Press
WeightWatchers files for bankruptcy protection to eliminate debt burden
NEW YORK (AP) — WeightWatchers said Tuesday it is filing for Chapter 11 bankruptcy protection to eliminate $1.15 billion in debt and focus on its transition into a telehealth services provider. Parent WW International Inc. said it has the support of nearly three-quarters of its debt holders. It expects to emerge from bankruptcy within 45 days, if not sooner. WeightWatchers, which was founded more than 60 years ago, has struggled recently. In 2023, the company moved into the prescription drug weight loss business — particularly with the $106 million acquisition of Sequence, now WeightWatchers Clinic, a telehealth service that helps users get prescriptions for drugs like Ozempic, Wegovy and Trulicity. FILE - This image shows the logo of WeightWatchers on a mobile phone, and the company's website, in New York, March 7, 2023. (AP Photo/Richard Drew, File) Its latest earnings report Tuesday showed that first-quarter revenue declined 10% while its loss on an adjusted basis totaled 47 cents per share. However, clinical subscription revenue — or weight-loss medications — jumped 57% year over year to $29.5 million. In September, WW International CEO Sima Sistani resigned, and the New York company named Tara Comonte, a WeightWatchers board member and former Shake Shack executive, interim chief executive. Comonte, now CEO, said in a statement Tuesday that, '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.' Winnipeg Free Press | Newsletter Winnipeg Jets Game Days On Winnipeg Jets game days, hockey writers Mike McIntyre and Ken Wiebe send news, notes and quotes from the morning skate, as well as injury updates and lineup decisions. Arrives a few hours prior to puck drop. Sign up for The Warm-Up Shares of the company have traded at under $1 since early February. In after-hours trading, the stock plunged by half to 39 cents. The bankruptcy filing was made in U.S. Bankruptcy Court for the District of Delaware.
