WW International Files for Chapter 11 Bankruptcy

WW International, which used to be known as Weight Watchers, filed for Chapter 11 bankruptcy protection on Tuesday, aiming to reduce its debt after facing challenges from popular obesity medications like Ozempic.

The company’s stock, once supported by media personality Oprah Winfrey, has dropped 40% in value following the bankruptcy announcement tied to a restructuring plan involving a group of lenders.

Starting as a small support group with 400 attendees, Weight Watchers rapidly grew into a global sensation, amassing millions of members.

However, the rise of GLP-1 medications, including Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound, has decreased interest in traditional weight loss programs.

In 2023, Weight Watchers expanded its services by acquiring a telehealth provider for weight loss drugs, but it reported a substantial loss of $345.7 million last year, alongside a 5.6% drop in subscription revenue year-over-year.

The company stated that its restructuring plan aims to eliminate $1.15 billion in debt, which is part of its total liabilities of around $1.6 billion.

According to the Chapter 11 filing with the Delaware Bankruptcy Court, WW International estimates its assets and liabilities to be between $1 billion and $10 billion.

After a rebranding in 2018 that shifted the company’s focus to overall health rather than just weight loss, WW has struggled to adapt to the evolving market.

Since reports from the Wall Street Journal surfaced in April, the company’s shares have plummeted by 60%, and it is bracing for bankruptcy proceedings in the near future.