This picture reveals the brand 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 stated Tuesday it’s submitting for Chapter 11 chapter safety to eradicate $1.15 billion in debt and deal with its transition right into a telehealth providers supplier.
Mother or father WW Worldwide Inc. stated 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. Nonetheless, scientific subscription income — or weight-loss medicines — jumped 57% yr over yr 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, stated in a press release Tuesday that, “Because the dialog round weight shifts towards long-term well being, our dedication to delivering probably the most trusted, science-backed, and holistic options —grounded in group help and lasting outcomes — has by no means been stronger, or extra necessary.”
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 Court docket for the District of Delaware.
