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WeightWatchers Files for Chapter 11 Bankruptcy, Reports Over $1 Billion in Debt
May 7, 2025
WeightWatchers, a company that inspired millions of men and women to lose weight over the years, has filed for Chapter 11 bankruptcy.
Per a press release announcement from the company, the Chapter 11 filing was completed as of May 6, and WeightWatchers claims that business will continue as usual. However, the popular weight loss company noted that it had over $1 billion in debt, which led to the filing.
“The Transaction will eliminate $1.15 billion in debt from the Company’s balance sheet, and position WeightWatchers for long-term growth and success,” the company said in the press release. “With this improved financial foundation, the Company is well equipped to execute its transformation plan, which includes innovating its digital and member experience and accelerating the expansion of its telehealth business which delivered 57% year-over-year revenue growth in Q1 2025.”
Furthermore, according to The New York Times, a group of investors will be taking over the company. Once the process is over, which should be in 45 days, current stockholders will keep a 9% ownership in the business.
According to the company’s most recent earnings report, its clinical business’s revenue — which includes prescription drugs — grew by 57% annually. However, it saw a 10% drop in revenue in the first quarter.
WeightWatchers Was Struggling To Adapt to the New Diet Landscape
In 2023, the company announced it was entering the weight loss drugs arena. Sima Sistani, the company’s then-CEO, placed a wager on obesity meds, specifically GLP-1s, by purchasing Sequence, a telemedicine company that carries these drugs. Some longtime members are upset about this decision because they believe it deviates from the program’s core principles, while others are optimistic that the combination of GLP-1s and WeightWatchers’ support services will offer a fresh strategy for combating obesity.
That, however, did little to stop the floundering membership. In February 2024, Oprah Winfrey — who had long served on the company’s board of directors — announced she was vacating her position and donating her interest in WeightWatchers to the National Museum of African American History and Culture.
“Weight Health is a critically important topic and one that needs to be addressed at a broader scale. I plan to participate in a number of public forums and events where I will be a vocal advocate in advancing this conversation,” Winfrey said in a statement at the time.
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