WeightWatchers Enters Chapter 11 Bankruptcy to Restructure Debt and Pivot to Telehealth
NEW YORK — WeightWatchers is filing for Chapter 11 bankruptcy protection to eliminate $1.15 billion in debt, marking a significant shift in its business strategy. The filing, supported by nearly three-quarters of its debt holders, aims to facilitate a transition into a telehealth services provider, with an anticipated emergence from bankruptcy within 45 days.
Founded over six decades ago, WeightWatchers has faced financial challenges, including a 10% decline in first-quarter revenue and an adjusted loss of 47 cents per share. However, its clinical subscription revenue, driven by weight-loss medications, surged by 57% year-over-year to $29.5 million, reflecting a shift in consumer demand.
In a recent management shake-up, CEO Sima Sistani resigned and was succeeded by Tara Comonte, a board member and former Shake Shack executive. Comonte emphasized the company’s commitment to science-backed weight management solutions in the evolving health landscape.
Stock prices plummeted following the news, with shares trading under $1 since February. The bankruptcy filing was processed in the U.S. Bankruptcy Court for the District of Delaware, signaling a pivotal moment for the company as it aims to reestablish its market position and innovate its offerings.
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