Famous for its diet plan, Weightwatchers, once recognized by celebrities including Oprah Winfrey, filed for bankruptcy after struggling to compete with weight loss drugs like Ozempic.
The company (renamed its brand WW International Inc.) filed a pre-packaged Chapter 11 petition to execute a lender-backed plan that would cut approximately $1.15 billion in debt from its balance sheet. It is expected to complete the reorganization in about 45 days.
Weightwatchers said the restructuring plan would “significantly reduce” its debt obligations. The proposed reorganization must be approved by the bankruptcy judge.
Weighing observers try to ride on weight loss pills by offering some weight loss medications on their platform, but finds that the program to convince customers is still worthy of using with the medication, which is a challenge.
The company reported last month that after reaching a debt damage agreement with most lenders, Bloomberg News reported that Bloomberg News reported last month that weight viewers were preparing to file court protection in the coming weeks.
Pre-packaged bankruptcy usually allows a company to exit Chapter 11 quickly without disrupting its business or unsecured creditors.
Weightwatchers said the restructuring plan will retain the $175 million it previously received from its revolving credit line, reduce its annual interest expense by about $50 million and extend the debt period.
StrigeWatchers listed assets and liabilities between $1 billion and $10 billion in the first quarter of the year, with revenue of $186.6 million, down 9.7% from revenue a year ago, with headwinds in the behavioral business cutting trends in the behavioral business due to lower subscriber and hiring challenges. The company also reported a 14.2% decline in term subscriber end points for the quarter, with a net loss of $72.6 million. It does not provide guidance for the entire fiscal year 2025.
The company will contact investors on Tuesday to explain the deadline debt agreement with creditors.
With the assistance of Dorothy Ma.
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