WeightWatchers files for bankruptcy after weight-loss drugs capsized industry

The Associated Press

· Posted: May 07, 2025 11:54 AM EDT | Last Updated: 6 minutes ago

WW International, formerly known arsenic WeightWatchers, has filed for Chapter 11 bankruptcy extortion connected Tuesday successful a bid to chopped its indebtedness aft hugely fashionable obesity drugs upended its concern model.

Shares of the company, which erstwhile boasted media mogul Oprah Winfrey arsenic 1 of its apical shareholders, slumped 40 per cent in extended trading connected Tuesday aft announcing plans to record for bankruptcy arsenic portion of a reorganization program with a radical of its lenders.

WeightWatchers began arsenic play weight-loss enactment radical gathering with 400 attendees and rapidly turned into a worldwide phenomena with millions of members crossed the globe.

But the rising popularity of GLP-1 drugs specified arsenic Novo Nordisk's Ozempic and Wegovy and Eli Lilly's Zepbound hit request for its accepted weight-loss programs.

Winfrey near the WW committee of directors in Feb. 2024 to destruct "any perceived struggle of interest" aft she admitted to taking weight-loss drugs, the institution said astatine the time.

About a twelvemonth earlier, WW had acquired a telehealth supplier to supply weight-loss drugs. But it reported a nonaccomplishment of $345.7 US cardinal past year, portion its subscription revenues fell 5.6 per cent year-over-year.

WW said the reorganization program volition destruct $1.15 cardinal US successful indebtedness from the company's equilibrium sheet. The institution has accumulated important indebtedness of astir $1.6 cardinal US.

The institution has estimated assets and liabilities successful the scope of $1 cardinal to $10 cardinal US, according to the Chapter 11 petition filed successful Delaware bankruptcy court.

After its rebranding to WW International successful 2018, the institution aimed to absorption connected wide wellness alternatively than conscionable value loss.

The company's shares person slumped 60 per cent since the Wall Street Journal archetypal reported successful April that the institution was preparing to record for bankruptcy successful the coming months.