WeightWatchers, the decades-old company known for its points-based diet system for weight loss, is currently facing severe financial difficulties. Over the past few years, the company has faced declining membership and revenue as more consumers have resorted to using medications such as Ozempic and Wegovy, which were initially designed for diabetes but are now gaining traction for their weight-loss benefits.
Responding to this situation, the company, which had incorporated the prescription of weight loss drugs through its WeightWatchers Clinic in 2023, has now filed for bankruptcy to offset some of its previously acquired debt.
WeightWatchers files bankruptcy claims to rid itself of $1.15 billion debt
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WeightWatcher filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware to rid itself of an estimated $1.15 billion in debt and focus on its transition into a telehealth services provider after its 2023 acquisition of Sequence, a telehealth platform.
According to the latest earnings report released on Tuesday, the company’s first-quarter revenue showed mixed financial performance as it declined by 10% with a reported adjusted loss of 47 cents per share. However, a bright spot emerged in its clinical subscription revenue and weight-loss medication sales, which surged by 57% compared to last year, reaching $29.5 million, thus prompting WeightWatchers to align more with concentrating resources on its telehealth service provision.
WeightWatchers’ CEO says the company is committed to providing healthy weight loss solutions
Despite the new move, Tara Comonte, who recently emerged as WeightWatchers’ CEO following Sima Sistani’s resignation in September, has revealed in a statement that the company remains committed to providing trusted, science-backed, and holistic solutions designed to foster sustainable results.
She added that WeightWatchers will continue addressing the evolving weight management discourse while integrating robust community support. This will ensure that individuals receive the guidance and encouragement that they need to achieve lasting success in their weight loss journey.
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