WeightWatchers, now operating under WW International Inc., has announced its Chapter 11 bankruptcy filing to eliminate $1.15 billion in debt and pivot towards becoming a telehealth services provider. With the backing of nearly 75% of its debt holders, the company anticipates exiting bankruptcy within 45 days. Founded over 60 years ago, WeightWatchers has faced significant challenges in recent years. In 2023, the company ventured into prescription weight-loss medications, acquiring Sequence, which is now known as WeightWatchers Clinic. This telehealth service assists users in obtaining prescriptions for drugs such as Ozempic and Wegovy.
The company’s latest financial report highlighted a 10% decline in first-quarter revenue and an adjusted loss of 47 cents per share. However, revenue from clinical subscriptions, primarily related to weight-loss medications, surged by 57% year over year, reaching $29.5 million. Following the resignation of CEO Sima Sistani in September, Tara Comonte, a board member and former Shake Shack executive, was appointed as interim CEO. Comonte emphasized the company’s commitment to providing trusted, science-backed, and holistic weight management solutions that focus on long-term health and community support.
Stock performance has been weak, with shares trading below $1 since early February, and during after-hours trading, the stock price dropped by half to 39 cents. The bankruptcy filing was submitted to the U.S. Bankruptcy Court for the District of Delaware, marking a significant step in the company’s efforts to restructure and refocus its business strategy.
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