This picture reveals the emblem of WeightWatchers on a cell phone, and the corporate’s web site, in New York, March 7, 2023.
Richard Drew/AP
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Richard Drew/AP
NEW YORK — WeightWatchers mentioned Tuesday it’s submitting for Chapter 11 chapter safety to eradicate $1.15 billion in debt and concentrate on its transition right into a telehealth providers supplier.
Father or mother WW Worldwide Inc. mentioned it has the help of almost three-quarters of its debt holders. It expects to emerge from chapter inside 45 days, if not sooner.
WeightWatchers, which was based greater than 60 years in the past, has struggled lately. In 2023, the corporate moved into the prescription drug weight reduction enterprise — notably with the $106 million acquisition of Sequence, now WeightWatchers Clinic, a telehealth service that helps customers get prescriptions for medicine like Ozempic, Wegovy and Trulicity.
Its newest earnings report Tuesday confirmed that first-quarter income declined 10% whereas its loss on an adjusted foundation totaled 47 cents per share. Nevertheless, scientific subscription income — or weight-loss drugs — jumped 57% 12 months over 12 months to $29.5 million.
In September, WW Worldwide CEO Sima Sistani resigned, and the New York firm named Tara Comonte, a WeightWatchers board member and former Shake Shack govt, interim chief govt.
Comonte, now CEO, mentioned in a press release Tuesday that, “Because the dialog round weight shifts towards long-term well being, our dedication to delivering essentially the most trusted, science-backed, and holistic options —grounded in group help and lasting outcomes — has by no means been stronger, or extra vital.”
Shares of the corporate have traded at beneath $1 since early February. In after-hours buying and selling, the inventory plunged by half to 39 cents.
The chapter submitting was made in U.S. Chapter Courtroom for the District of Delaware.
