WeightWatchers files for bankruptcy protection to eliminate debt burden - AP News

Published: Wednesday, May 7, 2025 at 12:15 am

WeightWatchers Files for Bankruptcy, Eyes Telehealth Future

WeightWatchers, the iconic weight loss company, is taking a significant step to restructure its finances. The company announced Tuesday it's filing for Chapter 11 bankruptcy protection, aiming to shed a hefty $1.15 billion debt burden. This move allows WeightWatchers, now known as WW International Inc., to reorganize and focus on its evolving business model: telehealth services.

The company, founded over six decades ago, has faced recent challenges. Its latest earnings report revealed a 10% decline in first-quarter revenue and a loss of 47 cents per share. However, there's a bright spot: revenue from clinical subscriptions, primarily weight-loss medications like Ozempic, Wegovy, and Trulicity, surged 57% year-over-year, reaching $29.5 million. This growth stems from WeightWatchers' acquisition of Sequence, now WeightWatchers Clinic, a telehealth service that helps users access these prescription drugs.

WeightWatchers anticipates a swift exit from bankruptcy, potentially within 45 days, backed by the support of nearly three-quarters of its debt holders. The company is now led by interim CEO Tara Comonte, who replaced Sima Sistani in September. Comonte emphasized the company's commitment to providing trusted, science-backed solutions and community support as the conversation around weight management evolves. The news sent the company's stock plummeting, trading at just 39 cents in after-hours trading. The bankruptcy filing was made in U.S. Bankruptcy Court for the District of Delaware.

BNN Perspective: This bankruptcy filing highlights the changing landscape of the weight loss industry. While the traditional model of in-person meetings and diet plans may be struggling, the demand for weight-loss medications is clearly on the rise. WeightWatchers' pivot to telehealth, while a risky move, could be a necessary adaptation to stay relevant. The company's success hinges on its ability to navigate this transition, balancing its legacy with the evolving needs of its customers.

Keywords: WeightWatchers, bankruptcy, Chapter 11, debt, telehealth, weight loss, Ozempic, Wegovy, Trulicity, Sequence, WW International Inc., earnings, revenue, clinical subscriptions, Tara Comonte, Sima Sistani, stock, New York, District of Delaware, weight loss medications

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