WeightWatchers files for Chapter 11 bankruptcy – Business News
WW International, previously generally known as WeightWatchers, has filed for Chapter 11 bankruptcy safety on Tuesday in a bid to cut its debt after Ozempic and different vastly standard weight problems medication upended its business model.
Shares of the company, which as soon as boasted of media mogul Oprah Winfrey as one of its high shareholders, slumped 40% in prolonged trading after asserting plans to file for bankruptcy as half of a reorganization plan with a group of its lenders.
WeightWatchers started as weekly weight-loss assist group assembly with 400 attendees, and shortly changed into a worldwide phenomena with hundreds of thousands of members throughout the globe.
WeightWatchers as soon as boasted of media mogul Oprah Winfrey as one of its high shareholders. REUTERS
But the rising reputation of GLP-1 medication akin to Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound hit demand for its conventional weight-loss packages.
It additionally acquired a telehealth supplier to offer weight-loss medication in 2023, however reported a loss of $345.7 million final yr, whereas its subscription revenues fell 5.6% year-over-year.
WW mentioned the reorganization plan will remove $1.15 billion in debt from the company’s steadiness sheet. The company has amassed substantial debt of round $1.6 billion.
Novo Nordisk’s Wegovy and Ozempic hit demand for the company’s conventional weight-loss packages. REUTERS
The company has estimated property and liabilities within the vary of $1 billion to $10 billion, in keeping with the Chapter 11 petition filed in Delaware bankruptcy courtroom.
After its rebranding to WW International in 2018, the company aimed to concentrate on general wellness somewhat than simply weight loss.
The company has estimated property and liabilities within the vary of $1 billion to $10 billion, in keeping with the Chapter 11 petition filed in Delaware bankruptcy courtroom. REUTERS
The company’s shares have slumped 60% because the Wall Street Journal first reported in April that the company was making ready to file for bankruptcy within the coming months.
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