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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.
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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.
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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.
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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.
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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.
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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.”
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Shares of the company have traded at under $1 since early February. In after-hours trading, the stock plunged by half to 39 cents.
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The bankruptcy filing was made in U.S. Bankruptcy Court for the District of Delaware.
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English (US)