WeightWatchers, the popular weight-loss program, announced Tuesday that it has filed for Chapter 11 bankruptcy protection to eliminate $1.15 billion in debt and position the company for “long-term growth and success” to “better serve its millions of members” worldwide.
According to a news release, WW International Inc. said the bankruptcy filing has support from its debt holders and expects to move through the process quickly. It aims to emerge within about 45 days while maintaining all business operations, including existing commitments to employees, vendors and creditors.
The company said that with an improved financial position, it will be well-equipped to carry out its transformation plan, which includes innovating the “digital and member experience.”
Additionally, its holistic care model— including its top-rated weight loss program, telehealth services and workshops — will remain fully operational during the reorganization.
WeightWatchers has struggled in recent years
NPR reported that WeightWatchers, a decades-old brand, has faced recent challenges and expanded into prescription weight loss in 2023 by acquiring Sequence, a $106 million telehealth platform now called WeightWatchers Clinic.
Tuesday’s earnings report revealed that WeightWatchers had 3.4 million total end-of-period subscribers, including 135,000 clinical subscribers. However, revenue declined 9.7% year-over-year to $186.6 million, despite a 57.1% increase in clinical subscription revenue to $29.5 million. The company reported a net loss of $72.6 million.
‘We remain focused on our key priorities’
Spectrum 1 News reported that in September, WW International CEO Sima Sistani stepped down, and the company appointed board member and former Shake Shack executive Tara Comonte as interim chief executive.
Comonte spoke Tuesday about the company’s plans and how it would help maintain its long-standing relationship with its members.
“We are making progress on our strategic priorities with continued momentum in our Clinical business, while laying the foundation for long-term, sustainable growth,” Comonte stated in a news release. “As the weight management landscape evolves, we believe our unique combination of science-backed behavioral support, clinical care, and engaged community positions us to deliver superior outcomes.”
“As we navigate this period of significant reset, we remain focused on our key priorities: delivering a unified and engaging member experience, revitalizing our brand, innovating and expanding adjacent revenue streams, and driving operational excellence and efficiency throughout the organization. As we execute our strategy with discipline, we are confident in our ability to stabilize the business and build the path back to growth, continuing our six-decade legacy of helping millions achieve healthier lives.”
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