After dominating the weight loss industry for over six decades, a popular brand offering solutions for weight loss, mindset services, and fitness is heading for bankruptcy. WeightWatchers, a brand Oprah Winfrey once endorsed, announced its bankruptcy filing due to debts and business readjustments.
Highlights
- WeightWatchers filed a petition for Chapter 11 bankruptcy in the United States Bankruptcy Court for the District of Delaware.
- The 1963-launched brand intends to remove the debts of its 100,000+ creditors through this filing.
- Operations will continue during the bankruptcy process, ensuring uninterrupted service for WeightWatchers’ 3 million+ customers.
WeightWatchers Files for Chapter 11 Bankruptcy
The fitness and weight loss platform announced on May 6 that it is entering Chapter 11 bankruptcy proceedings in the United States Bankruptcy Court for the District of Delaware.
WeightWatchers currently owes $1.5 billion in debt. Apart from this, the company filed the petition as its user base is shifting towards drug-based weight loss options like Ozempic (a GLP-1 drug). The growing trend of free fitness apps and influencers has also propelled the decision.
Delaware’s court documents revealed that the company, which is now known as WW International, has listed assets and liabilities from $1 billion to $10 billion. As of now, the science-backed weight management platform has more than 100,000 unsecured creditors.
WeightWatchers hopes that business readjustments through the current bankruptcy filing will help it save its $175 million funding. The New York-based company also expects that its annual interest expense will be reduced by around $50 million.
What Have the Company Officials Said?
CEO Tara Comonte stressed the support of lenders for WeightWatchers, which would help the six-decade-old brand restructure its operations. Comonte added that their debts would be eliminated within 45 days, and WeightWatchers would come out as a publicly traded company.
WeightWatchers to Continue Operations Throughout the Process
In its official announcement, WeightWatchers stated that while it goes through the Chapter 11 proceedings in Delaware, operations will continue as before. The weight loss and fitness platform will keep assisting its over three million members for the the next 45 days.
Background and Pre-Bankruptcy Struggles of WeightWatchers
The journey of the science-backed weight loss and fitness platform started in 1963. Jean Nidetch came up with the brand during her hunt for a safe alternative to pills and diets.
WeightWatchers soon became a popular name in the U.S. fitness culture. Oprah Winfrey joined the company’s board of directors ten years ago. WW International’s share prices touched a milestone figure of $100 in 2018.
However, things started going downhill for the weight loss and fitness platform as it witnessed a 9.7% dip in revenue in this year’s first quarter compared to 2024. Its subscribers also decreased by 14.2% for the same quarter, in addition to a $72.6 million loss.
Apart from these, Oprah Winfrey left the board membership and donated her stocks to a museum.
While services continue for WeightWatchers’ 3 million+ users, its ability to evolve during the 45 days will determine its potential to thrive amid changing weight loss and fitness trends.
