The company announced that its first quarter revenue fell 9.7% year-on-year.
Weight Management Company’s WeightWatchers filed for bankruptcy protection to restructure their businesses due to a significant debt burden.
The weight watcher explored various ways to reduce his debt and ultimately decided to go bankrupt for Chapter 11. Bankruptcy has made it clear that it does not mean that the company is out of business or liquidating.
The financial restructuring transaction “eliminates $1.15 billion in debt from the company’s balance sheet and positions weight watchers for long-term growth and success,” the company said.
According to WeightWatchers, it hopes to quickly pass the bankruptcy process, aiming to emerge from the reorganization process within about 45 days.
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The company said it will be “fully operated” during the reorganization process and “does not affect the members or plans that we rely on to support weight management goals.” These plans include “physician-recommended weight loss programs, telehealth provision with access to obesity-trained clinicians, and virtual and in-person workshops,” according to the statement.
The company intends to pay in full in full to trade creditors and other general unsecured creditors. WeightWatchers expects to remain a publicly available company once the reorganization is complete.
Revenue release, drug delivery
The reorganization was announced on the same day when Weightwatcher revealed first-quarter revenue results.
Total quarterly revenue was $186.6 million, down 9.7% from the previous year. At the end of the quarter, the company had 3.4 million subscribers, down 14.2% per year.
The net loss was $72.6 million, down from $347.9 million the previous year. The company did not provide guidance for 2025.
Commonte said the company has been undergoing a “significant reset” period and focuses on key priorities, including revitalizing the brand and expanding revenue streams.
“When we execute our strategy with discipline, we are confident in our ability to stabilize our business and build a path back to growth,” she said.
In March 2023, the company acquired the Telehealth platform sequence. The TeleHealth Platform Sequence has prescribed weight loss medications to people. That December, WeightWatchers launched the GLP-1 program. It supports people with weight loss drugs such as Ozempic.
“What we saw is that people taking GLP-1 medications need help with different behavioral challenges compared to those who are not these medications,” said Gary Foster, chief science officer at Weight Watchers at the time.
Conversely, he stated that “the risk of gastrointestinal disorders, hypotension, syncope, arthritis disorders, nephrolithiosis, interstitial nephritis, and drug-induced pancreatitis has increased.”
Dr. Ziyad Al-Aly, co-author of the study, said the findings “emphasize the potential for broader applications of these drugs, but highlight important risks that should be monitored carefully in people taking these drugs.”
