WeightWatchers, now under the parent company WW International Inc., announced Tuesday its filing for Chapter 11 bankruptcy protection to restructure $1.15 billion in debt while transitioning into a telehealth service provider. The company has garnered support from approximately 75% of its debt holders, aiming to emerge from bankruptcy within 45 days. Founded over 60 years ago, WeightWatchers has faced challenges, with a recent shift towards the prescription weight loss market following its $106 million acquisition of Sequence, now branded as WeightWatchers Clinic. This telehealth service enables users to obtain prescriptions for weight-loss medications like Ozempic and Wegovy.
In its latest earnings report, the company noted a 10% decline in first-quarter revenue, reporting a loss of 47 cents per share on an adjusted basis. However, revenue from clinical subscriptions, which includes weight-loss medications, surged 57% year over year to $29.5 million. The company has also experienced leadership changes, with CEO Sima Sistani resigning in September, and board member Tara Comonte stepping in as interim CEO.
Comonte emphasized the importance of the company’s commitment to providing trusted, science-backed solutions focused on long-term health and community support. WeightWatchers’ stock has struggled since February, trading under $1, and fell by 50% in after-hours trading to 39 cents following the announcement. The bankruptcy filing was submitted in the U.S. Bankruptcy Court for the District of Delaware.
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