Latest news with #WWInternationalInc
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.
Miami Herald
07-05-2025
- Business
- Miami Herald
WeightWatchers Files Bankruptcy After Growth in GLP-1 Drugs
Business WeightWatchers Files Bankruptcy After Growth in GLP-1 Drugs WeightWatchers, known for its diet programs once endorsed by celebrities including Oprah Winfrey, has filed for bankruptcy after struggling to compete with drugs like Ozempic and the rise of TikTok fitness influencers. 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. WeightWatchers 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. The company has also been grappling with annual interest expenses of over $100 million, which has limited its ability to invest in growth initiatives and marketing, according to court filings. The company has also struggled with the growth of free or low-cost fitness-related social media content and diet-based smartphone apps. WeightWatchers Chief Financial Officer Felicia DellaFortuna said in a court filing that consumers are increasingly "rejecting traditional weight-loss narratives" and flocking to do-it-yourself weight-loss apps. The shift has been fueled by influencers who share their personal success stories and offer fitness advice to their followers on Instagram, YouTube and TikTok, DellaFortuna said. The company is seeking court protection in Delaware after Bloomberg News reported last month that it was preparing to file in the coming weeks following a debt-restructuring agreement with the majority of its lenders. Prepackaged plan 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 and reduce its annual interest expense by about $50 million. The plan envisages the reorganized company issuing $465 million in new term loans and notes, which will mature five years from the effective date of the restructuring, filings said. Holders of first-lien claims will be entitled to their pro-rata share of the new debt, as well as 91% of the shares of the reorganized company's common stock. Existing equity holders will be reallocated 9%, provided that milestones in the restructuring plan are met. WeightWatchers, which has around $1.6 billion in funded debt, 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. (With assistance from Dorothy Ma, Libby Cherry and Natasha Doff.) Copyright (C) 2025, Tribune Content Agency, LLC. Portions copyrighted by the respective providers.
Yahoo
07-05-2025
- Business
- Yahoo
WeightWatchers Files Bankruptcy After Growth in GLP-1 Drugs
(Bloomberg) -- WeightWatchers, known for its diet programs once endorsed by celebrities including Oprah Winfrey, has filed for bankruptcy after struggling to compete with drugs like Ozempic and the rise of TikTok fitness influencers. Most Read from Bloomberg 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. WeightWatchers 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. The company has also been grappling with annual interest expenses of over $100 million, which has limited its ability to invest in growth initiatives and marketing, according to court filings. The company has also struggled with the growth of free or low-cost fitness-related social media content and diet-based smartphone apps. WeightWatchers Chief Financial Officer Felicia DellaFortuna said in a court filing that consumers are increasingly 'rejecting traditional weight-loss narratives' and flocking to do-it-yourself weight-loss apps. The shift has been fueled by influencers who share their personal success stories and offer fitness advice to their followers on Instagram, YouTube and TikTok, DellaFortuna said. The company is seeking court protection in Delaware after Bloomberg News reported last month that it was preparing to file in the coming weeks following a debt-restructuring agreement with the majority of its lenders. Prepackaged Plan 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 and reduce its annual interest expense by about $50 million. The plan envisages the reorganized company issuing $465 million in new term loans and notes, which will mature five years from the effective date of the restructuring, filings said.
San Francisco Chronicle
07-05-2025
- Business
- San Francisco Chronicle
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. 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.'
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.
