WeightWatchers files for bankruptcy

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WeightWatchers has filed for Chapter 11 bankruptcy in a bid to restructure its $1.15 billion in debt and prevent the company from shutting down. 

The company expects to emerge from bankruptcy within 45 days – or sooner – and focus on its transition to a telehealth services provider. WeightWatchers has more than 3 million members worldwide, according to the company. 

"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 CEO Tara Comonte said in a statement. 

WeightWatchers has been struggling for years

The backstory:

WeightWatchers was founded in 1963 by 37-year-old New York housewife Jean Nidetch, who overcame her own obesity problems then shared her guiding principles with others in meetings that became known as WeightWatchers. It eventually became the most widely known weight loss company of its kind, but it has struggled recently. 

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In 2023, the company moved into the prescription drug weight loss business — particularly with the $106 million acquisition of Sequence, now WeightWatchers Clinic, a telehealth service that helps users get prescriptions for drugs like Ozempic, Wegovy and Trulicity.

Weight Watchers logo displayed at a Weight Watchers meeting room and store location in Staten Island, New York.on June 28, 2016 in New York City. (Photo by Eugene Gologursky/Getty Images for Weight Watchers)

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In September, WW International CEO Sima Sistani resigned, and the New York company named Comonte, a WeightWatchers board member and former Shake Shack executive, interim chief executive.

Its latest earnings report Tuesday showed that first-quarter revenue declined 10%, but clinical subscription revenue — or weight-loss medications — jumped 57% year over year to $29.5 million.

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Shares of the company have traded at under $1 since early February. In after-hours trading, the stock plunged by half to 39 cents.

What they're saying:

"WeightWatchers remains fully operational during the reorganization process and there will be no impact to members or the plans they rely on to support their weight management goals," the company said in a statement. "All trade creditors and other general unsecured creditors will be paid in full. Additionally, the Company intends to remain a publicly traded company upon emergence from the process."