WW International Inc., the parent company of WeightWatchers, announced Tuesday that it has filed for Chapter 11 bankruptcy protection as part of a restructuring effort to eliminate $1.15 billion in debt. The company said this move would support its ongoing transformation from a traditional weight loss program into a modern telehealth provider. The bankruptcy filing, submitted in the U.S. Bankruptcy Court for the District of Delaware, has backing from nearly 75% of the company’s debt holders.
WeightWatchers stated that it expects to complete the bankruptcy process and emerge from court supervision within 45 days or possibly sooner. The company emphasized that this strategic reset will allow it to better focus on growth areas, particularly its entry into the prescription drug-assisted weight loss market. Founded more than six decades ago, WeightWatchers has faced increasing competition and changing consumer preferences, prompting the shift.
Telehealth Expansion Shows Promise Despite Financial Struggles
In 2023, WeightWatchers pivoted into the fast-growing telehealth and weight loss medication space with the $106 million acquisition of Sequence, a platform that facilitates prescriptions for drugs like Ozempic, Wegovy, and Trulicity. Now operating under the name WeightWatchers Clinic, the service reflects the company’s bid to stay relevant in a changing health and wellness landscape.
While overall revenue declined 10% in the first quarter of 2024, and the company posted an adjusted loss of 47 cents per share, one bright spot was its clinical subscription revenue. That segment surged 57% year over year, reaching $29.5 million, highlighting strong demand for medically supervised weight loss solutions.
Despite this momentum, the company’s financial position remains precarious. Its stock has been trading below $1 since February and dropped further to just 39 cents in after-hours trading following the bankruptcy announcement.
Leadership Changes and Commitment to a Holistic Health Approach
Leadership transitions have accompanied the company’s transformation. In September, then-CEO Sima Sistani stepped down, and Tara Comonte, a WeightWatchers board member and former Shake Shack executive, was appointed interim CEO. Comonte has since taken on the role permanently and remains focused on guiding the company through this pivotal phase.
In a statement on Tuesday, Comonte underscored the company’s renewed mission: “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.”
WeightWatchers’ transition reflects broader changes in how consumers approach weight management, increasingly turning to medical and digital tools for long-term health solutions. The company is betting that a successful reorganization under Chapter 11 will enable it to compete more effectively in this evolving marketplace.
