Latest news with #WWInternational
Reuters
6 days ago
- Business
- Reuters
WeightWatchers to exit process to cut $1.15 billion debt next week
June 17 (Reuters) - WW International ( opens new tab, formerly known as WeightWatchers, is on track to exit its financial reorganization to cut $1.15 billion in debt next week as part of its bankruptcy process, the weight management firm said on Tuesday. WeightWatchers filed for Chapter 11 bankruptcy protection last month in a bid to cut its debt after hugely popular obesity drugs upended its business model. The company offers nutrition and behavior-change programs for weight loss and also bought subscription-based telehealth platform Sequence in 2023 to expand into obesity drug prescriptions. WeightWatchers began as a weekly weight-loss support group meeting with 400 attendees, and quickly turned into a worldwide phenomenon with millions of members across the globe. But the rising popularity of GLP-1 drugs such as Novo Nordisk's ( opens new tab Wegovy and Eli Lilly's (LLY.N), opens new tab Zepbound for obesity hit demand for its traditional programs. The company had an agreement with creditors to restructure its debt and quickly exit the court process. It has continued operating as a publicly traded company without interruption throughout the reorganization process, the company said on Tuesday. WW said the reogranization plan will eliminate $1.15 billion in debt from the company's balance sheet. It has accumulated substantial debt of around $1.6 billion, according to the Chapter 11 petition filed in Delaware bankruptcy court.
Business Journals
08-05-2025
- Business
- Business Journals
WeightWatchers files for bankruptcy
Story Highlights WW International filed for bankruptcy to eliminate $1.15 billion in debt while continuing operations. The company has pivoted toward clinical weight loss solutions, including GLP-1 drugs. Leadership and strategic shifts have reshaped WW in recent years. WW International (NASDAQ: WW) has declared bankruptcy to eliminate $1.15 billion in debt, a move the company said will position WeightWatchers for long-term growth and success. WeightWatchers said operations will continue with no impact on its more than three million members worldwide. UNLOCK EVERY ARTICLE Get Started For Only $9 GAIN ACCESS TO EVERY LOCAL INSIGHT, LEAD AND MORE! Become A Member The 60-year-old company, developed around a behavior modification and community support model, pivoted in April 2023 to also offer clinical weight loss solutions including GLP-1 drugs, acquiring subscription telehealth platform Sequence (now WeightWatchers Clinic) for $132 million. The global market for GLP-1 drugs like Novo Norodisk's Ozempic and Wegovy and Eli Lilly's Zepbound is estimated to grow from $49.3 billion in 2025 to $157.5 billion by 2035. Sima Sistani, who was CEO of WW during the Sequence acquisition, said at the time that WeightWatchers was at a 'pivotal point' and that offering clinical interventions was 'a natural next step' for the weight loss company. In May 2023, competitor Noom followed suit, announcing that it was launching a program that included access to a suite of telehealth services and weight-loss drugs along with its psychological tools for weight loss. Oprah Winfrey, a long-time WW spokesperson and member of the company's board of directors since 2015, disclosed in 2023 that she was taking a weight-loss medication and resigned down from the WW board in February 2024 to avoid any appearance of conflict of interest. Winfrey had acquired a 10% stake in WeightWatchers in 2015, but sold most of her shares in 2023, later donating the rest to the National Museum of African American History and Culture. Sistani left the company in September 2023 after second-quarter results showed net income down 54.2% to $23.3 million and a 6.1% drop in subscribers. Current CEO Tara Comonte, then a member of the WW board, stepped in the fill the top role on an interim then permanent basis. Comonte was previously CEO of TMRW Life Sciences, a technology company in the reproductive health sector. "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," Comonte said. There has been an increasing push for employers to offer obesity treatments, including anti-obesity medications, as part of their health plans. The Alliance for Women's Health and Prevention called in an open letter to employers in March for coverage for all types of care, from medications to bariatric surgery and nutritional guidance. But some employers have pushed back, citing the high cost of GLP-1 medications. WeightWatchers has launched a dedicated web page for members to get more information about the court-supervised restructuring process at
Sky News
08-05-2025
- Business
- Sky News
WeightWatchers files for bankruptcy - what went wrong?
WeightWatchers has filed for bankruptcy. The diet brand, which was founded more than 60 years ago, said on Tuesday that it was filing to write off $1.15bn of debt and to focus on transitioning into a remote telehealth services provider. Founded in 1963 by American businesswoman Jean Nidetch, the company aims to help members monitor their diets by using a points system, with the goal to try and avoid foods with higher points. At its peak in 2018, WeightWatchers had 4.5 million subscribers, and its stock traded as high as $100 (£75). But it has since lost value and rebranded to become WW International. So what is behind the slimming down of WeightWatchers? Its overall revenue for the 2024 financial year was $786m (£592m), down 11.7% on the previous year. The report said the decline was "primarily driven" by recruitment challenges and the closure of the consumer products business. While the company also sells a range of ready meals, snacks and low-calorie wines, it has been primarily focused on subscribers. Big names leaving the brand In September, WW International CEO Sima Sistani resigned, and Tara Comonte was named interim chief executive. In a statement on Tuesday, she said: "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." In another blow to the company, Oprah Winfrey, a long-time ambassador, quit the WeightWatchers board last year. In March 2024 the television personality announced she had quit ahead of the airing of a special programme titled An Oprah Special: Shame, Blame And The Weight Loss Revolution, saying she did not want a "perceived conflict of interest," as she wanted to publicly discuss her use of weight-loss medication. She said she had donated all of her shares in the company to the Smithsonian Museum Of African American History And Culture. Targeting the younger generation The company has also struggled to attract younger customers. In an attempt to do so in 2018, WeightWatchers bought the app Kurbo. A year later, it launched the platform to the public, aimed at helping children aged between eight and 17 create healthy habits. The app followed a paediatric weight control programme made by Stanford University and offered 15-minute personal training sessions as a way to log food intake and recipes. However, it was met with criticism by celebrities, including actress and activist Jameela Jamil, nutritionists and members of the public, who raised concerns it would make children obsessed with weight and counting calories. 1:22 The influence of weight loss injections WeightWatchers has also been struggling to keep up as a key player in the industry due to the introduction of effective weight loss drugs, including Wegovy, created by Danish pharmaceutical company Novo Nordisk. The drug soared in popularity by offering a quicker fix to obesity, which is a growing health concern around the globe. Some people also take Ozempic to lose weight. The medication, also used to treat Type 2 diabetes, slows down how quickly food is digested and can reduce appetite, making people eat less. Both Ozempic and Wegovy are different brand names for the same injectable drug, semaglutide. The drug works by making you feel fuller for longer. To try and compete with the booming industry, WeightWatchers bought subscription-based telehealth platform Sequence in 2023 to expand into obesity drug prescriptions. In its latest earnings report on Tuesday, WeightWatchers' first-quarter revenue declined 10% while its loss on an adjusted basis totalled 47 cents per share. However, it clinical subscription revenue - or weight-loss medications - jumped 57% year over year to $29.5m. WW International has said it expects to emerge from bankruptcy within 45 days, if not sooner.
Times
08-05-2025
- Business
- Times
WeightWatchers files for bankruptcy as Ozempic hits demand
WeightWatchers has filed for bankruptcy protection in an attempt to reduce its debt burden after its business model was challenged by weight loss drugs such as Ozempic. The company behind the weight loss service, WW International, filed for insolvency under the United States' Chapter 11 rules, which allow businesses a chance to reorganise their liabilities while continuing to trade. Shares in the business slumped by almost 35 per cent, leaving it with a market value of about $64 million. It was once worth more than $2.5 billion. The business has its origins in a support group for overweight New Yorkers that was established in 1963. It developed a system that allocated points to foods based on their calorific value. Its service peaked at five million
Yahoo
07-05-2025
- Business
- Yahoo
Weight Watchers files for bankruptcy to help compete with Ozempic
Weight Watchers files for bankruptcy to help compete with Ozempic Weight Watchers has filed for bankruptcy as it struggles to compete with weight-loss drugs like Ozempic (AP) Since 1963, it has been a go-to destination for those complaining of a straining waistband. Now, Weight Watchers has filed for bankruptcy as the health and wellness company's business model struggles to compete in a weight-loss market dominated by drugs such as Ozempic and online fitness influencers. The New York-based company, which rebranded as WW International in 2018, filed for Chapter 11 bankruptcy in Delaware on Tuesday. It hopes to eliminate debts of more than $1.1bn while positioning the 'company for long-term growth and success'. This type of bankruptcy permits a company to restructure its assets and debts to stay in business. ADVERTISEMENT Advertisement WW International revealed in its first quarter results on Tuesday that subscribers were down more than 14 percent compared to the same period last year, at 3.4 million. Revenues of nearly $187m plunged almost 10 percent compared with the year prior. The company is due to be taken over by a group of investors, while shareholders will retain a 9 percent stake once the process is complete in 45 days, per the filing. CEO Tara Comnte said in a statement on Tuesday that the decision 'will give us the flexibility to accelerate innovation, reinvest in our members, and lead with authority in a rapidly evolving weight management landscape'. Semaglutide jabs like Ozempic are currently dominating the weight-loss market (Getty) Jean Nidetch, a married mother of two from Queens, founded the company following her weight-loss journey in the early 1960s, when she was mistaken for pregnant in a local supermarket. ADVERTISEMENT Advertisement After that run-in, Nidetch shed approximately 72 pounds and kept it off by following a strict diet, which included eating lots of liver and fish, overseen by the New York City Board of Health Obesity Clinic. Starting in 1963, Nidetch invited six friends, all women struggling with their weight, to meet weekly in her home to both support and commiserate with each other. She went on to charge members a fee in exchange for calorie-counting programs, meetings, and sharing stories. Nidetch encouraged her members to be responsible and eat lots of fish. After two years, the self-described 'fat housewife' turned her weight-loss success story into a multimillion-dollar empire. ADVERTISEMENT Advertisement The company evolved by adding an exercise regime and implementing a new system: tallying up points based on portion sizes and what you eat. Oprah Winfrey had been on Weight Watchers' board for a decade before stepping down last year (Getty for Critics Choice) In 2015, Oprah Winfrey purchased a 10 percent stake in Weight Watchers and joined the company's board of directors. She credited the company with helping her lose 40 pounds. By 2018, share prices had risen thirteenfold to about $100 since the veteran talk show host first became one of the company's biggest backers. In 2020, Weight Watchers' subscribers worldwide peaked at 5 million. Then the Covid-19 pandemic hit, resulting in a vast drop in members attending in-person meetings. ADVERTISEMENT Advertisement In December 2023, Winfrey revealed that she had been using Ozempic. She left the board several months later, sending stocks tumbling. That year, the company acquired Sequence, a subscription-based telehealth platform, and began offering weight-loss medications. While Weight Watchers' 2025 Q1 report showed that gross revenues were down, revenues from Clinical, which was rebranded from Sequence, grew 57 percent year over year. Down from the dizzying heights of 2018, the company's shares closed at 79 cents on Tuesday.
