(WJET/WFXP) — WeightWatchers, the well-known subscription-based weight loss and wellness program, filed for bankruptcy late Tuesday afternoon.
According to a press release by the company (“WW International”), Tuesday’s filing of its prepackaged Chapter 11 restructuring plan will help eliminate $1.15 billion in debt, which, they say, will strengthen their financial position for long-term growth. The company has been struggling with debt, with some appearing on the balance sheet for decades. This move allows the company to restructure its balance sheet without having to go out of business or liquidate.
Court documents reveal that WW International currently holds assets and liabilities in the range of $1 billion to $10 billion, with over 100,000 creditors.
“For more than 62 years, WeightWatchers has empowered millions of members to make informed, healthy choices, staying resilient as trends have come and gone,” said Tara Comonte, Chief Executive Officer of WeightWatchers. “The decisive actions we’re taking today, with the overwhelming support of our lenders and noteholders, will give us the flexibility to accelerate innovation, reinvest in our members, and lead with authority in a rapidly evolving weight management landscape. 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.”
Comonte says the financial restructuring will free the company up to adjust to a rapidly-changing fitness and weight loss landscape, the Wall Street Journal reports.
The paper reports that WeightWatchers has struggled to compete with the current use of free fitness apps, social-media influencers and the popularity of weight loss drugs like Ozempic.
Operations will continue as normal, avoiding any impact on its more than three million members around the world. The company hopes for a swift process emerging from the restructuring process in approximately 45 days, if not sooner, and intends to exit the process remaining as a publicly traded company.
WeightWatchers has launched a dedicated site for members to get more information about the court-supervised restructuring process.
