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Parent WW International Inc. said it has the support of nearly
three-quarters of its debt holders. It expects to emerge from
bankruptcy within 45 days, if not sooner.
WeightWatchers, which was founded more than 60 years ago, has
struggled recently. 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.
Its latest earnings report Tuesday showed that first-quarter
revenue declined 10% while its loss on an adjusted basis totaled
47 cents per share. However, clinical subscription revenue — or
weight-loss medications — jumped 57% year over year to $29.5
million.
In September, WW International CEO Sima Sistani resigned, and
the New York company named Tara Comonte, a WeightWatchers board
member and former Shake Shack executive, interim chief
executive.
Comonte, now CEO, said in a statement Tuesday that, "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.”
Shares of the company have traded at under $1 since early
February. In after-hours trading, the stock plunged by half to
39 cents.
The bankruptcy filing was made in U.S. Bankruptcy Court for the
District of Delaware.
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