WeightWatchers Files for Chapter 11 Bankruptcy to Cut $1.15 Billion Debt, Shift to Telehealth in 45 Days

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Updated May 7, 2025, 07:11 AM

WeightWatchers, officially known as WW International Inc., has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware. The 62-year-old program, founded by Jean Nidetch, aims to eliminate $1.15 billion in debt and focus on transitioning into a telehealth services provider. The filing, supported by nearly three-quarters of its debt holders, is expected to allow WeightWatchers to emerge from bankruptcy within 45 days. The move comes as the company has struggled with approximately $1.5 billion in debt and has been unable to keep pace with more convenient weight loss options, such as GLP-1 drugs like Ozempic. In its latest earnings report, WeightWatchers reported a 10% decline in first-quarter revenue and an adjusted loss of 47 cents per share. However, revenue from its clinical subscription service, which includes weight-loss medications like Wegovy and Trulicity, increased by 57% year over year to $29.5 million. This service was bolstered by the $106 million acquisition of Sequence, now known as WeightWatchers Clinic. The company's operations will continue as normal during the bankruptcy process, and it expects to emerge as a publicly traded company in about 40 days. CEO Tara Comonte, who replaced former CEO Sima Sistani, stated that the actions taken will provide flexibility to accelerate innovation and better serve its 3.3 million subscribers in the evolving weight management landscape. The company has faced challenges, including the departure of star investor Oprah Winfrey, who credited the program for helping her lose 40 pounds, and its shares have devolved into a penny stock, far from its peak of around $100 in 2018.

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