WeightWatchers, the iconic weight loss brand, has filed for Chapter 11 bankruptcy protection in an effort to eliminate $1.15 billion in debt and refocus its business on telehealth services. The company made the announcement on Tuesday, stating that it has secured the support of nearly 75% of its debt holders and expects to emerge from bankruptcy within 45 days or sooner.
Founded over 60 years ago, WeightWatchers has faced significant financial and strategic challenges in recent years. The company has been undergoing a transformation to adapt to changing consumer health trends, particularly the growing demand for prescription weight-loss medications.
In 2023, WW International Inc., the parent company, made a bold move into the telehealth sector with its $106 million acquisition of Sequence. Now rebranded as WeightWatchers Clinic, the service offers access to popular weight-loss drugs such as Ozempic, Wegovy, and Trulicity. This pivot reflects a broader shift in the company’s focus — from traditional diet programs to medically assisted weight management. 
Despite this shift, WeightWatchers has continued to struggle financially. The latest earnings report showed a 10% decline in first-quarter revenue. The company also reported an adjusted net loss of 47 cents per share. However, there were some positive signs: revenue from clinical subscriptions — mainly from weight-loss medications — rose 57% year-over-year to $29.5 million.
Leadership at the company has also changed. In September, CEO Sima Sistani resigned, and the board appointed Tara Comonte, a current board member and former Shake Shack executive, as interim CEO. She has since taken on the role full-time.
In a statement released Tuesday, Comonte emphasized the company’s renewed mission: “As the conversation around weight shifts toward long-term health, our commitment to delivering the most trusted, science-backed, and holistic solutions — grounded in community support and lasting results — has never been stronger, or more important.”
Shares of WW International have traded below $1 since early February. Following the bankruptcy announcement, the stock dropped further in after-hours trading to 39 cents, cutting its value in half.
The bankruptcy filing was made in U.S. Bankruptcy Court for the District of Delaware and is expected to facilitate a more sustainable financial structure as the company continues its strategic pivot.
