WeightWatchers, a wellness program once backed by Oprah Winfrey, filed for bankruptcy this week to try and bolster its financial position and ensure its survival in the highly saturated weight-loss market.
In filing for Chapter 11 bankruptcy protection, WW International Inc. said it will be able to eliminate $1.15 billion in debt from its balance sheet, and position itself for long-term growth and success.
“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,” WeightWatchers CEO Tara Comonte said.
WEIGHTWATCHERS BETS ON WEIGHT-LOSS DRUGS WITH LAUNCH OF NEW PROGRAM
The company said it will remain fully operational during this process and that members will not be impacted. This means the “plans they rely on to support their weight management goals” will remain fully operational, the company said.
While it ceased trading on the Nasdaq, WeightWatchers expects to emerge as a publicly traded company when it completes the reorganization process.
The company began in the 1960s and revolutionized the diet industry through its weight-loss and weight-management programs. It even gained traction among high-profile figures with Winfrey partnering with the company in 2015. She left the board of directors in 2024.
WEIGHTWATCHERS CEO SIMA SISTANI OUT IN ABRUPT EXIT, EMBRACED WEIGHT LOSS DRUGS
However, in recent years, the company has struggled to remain competitive as the popularity of weight-loss drugs rapidly changed how people approach dieting.
Morgan Stanley Research re-evaluated the global market for obesity drugs, and is now expecting it to reach between $105 billion and $144 billion in 2030. That’s up from an earlier projection of $77 billion. In 2023, sales of branded obesity drugs notched $6 billion, according to Morgan Stanley Research.
In an effort to revive the brand, the company acquired telehealth platform Sequence, now known as WeightWatchers Clinic, to help expand into obesity drug prescriptions. With its telehealth platform, it offers obesity-trained clinicians and prescription weight-loss medications, and virtual and in-person workshops.
Still, woes persisted for the company as its former CEO Sima Sistani abruptly left in September 2024.
Read the full article here
