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WeightWatchers (WW+12.06%) announced Tuesday that it is filing for bankruptcy in an attempt to crawl out of more than $1 billion in debt. The move comes as the company refocuses on prescribing weight loss GLP-1 drugs like Ozempic.
The once-iconic weight loss company, controlled by parent company WW International Inc, said it plans to emerge from bankruptcy within 45 days and will continue operating, according to NPR.
The company announced its shift to prescribing weight loss drugs in 2023, but has struggled to compete in a competitive market. It also lost its most prominent spokesperson, Oprah Winfrey, in 2024, who left the board after announcing that she was on a weight-loss medication.
Shares of the 62-year-old company reached a peak of just over $100 in 2018, but have since plummeted and have been worth less than a dollar since early February. They sank even more on Wednesday following the bankruptcy announcement, down more than 45% as of 11 a.m Eastern and sitting at $0.43 a share.
Tara Comonte, the interim CEO who took over last fall after CEO Sima Sistani resigned, said in a statement Tuesday: “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.”
The announcement comes after Weight Watchers reported a 10% decline in first-quarter revenue, according to NPR. The company is, however, making progress with its clinical subscription revenue, seeing a 57% increase year-over-year to $29.5 million.