Bankruptcy Woes
There’s been a lot of big business bankruptcies this year, from Big Lots to Publishers Clearing House. The latest to hit the news cycle is Weight Watchers, which just filed for Chapter 11 bankruptcy protection. Here’s what we know.
Why Is Weight Watchers Filing for Bankruptcy?
Weight Watchers is planning to use the bankruptcy process as a way of shedding $1.15 billion in debt and refocusing the business on providing telehealth services. The 62-year old company is struggling partially because of the rise in weight loss medications like Ozempic and Wegovy. The company expects that the bankruptcy process and reorganization will take about 40 days to complete.
What Does Weight Watchers Do Now?
Anyone familiar with Weight Watchers in the ‘90s will probably be surprised by what the company is like now. It still offers membership-based support groups, but it’s also in the business of providing prescription weight loss medications via telehealth services. The company rebranded as WW International, Inc. as it expanded its focus beyond weight loss. In 2023, Weight Watchers purchased a telehealth service called Sequence, and since then, revenue from its telehealth business has grown 57% year-over-year even while overall revenue has fallen.
Will Weight Watchers Go Out of Business?
No, Weight Watchers is not planning to go out of business and is using the bankruptcy process to reorganize the company. “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,” said the company’s CEO in a press release.
Will This Affect Me if I’m a Member?
If you’re currently a member of Weight Watchers, this bankruptcy should not affect you, according to the company. It will remain fully operational, and “there will be no impact to members or the plans they rely on to support their weight management goals.”
Is Oprah Still a Spokesperson?
One of the most memorable things about Weight Watchers is Oprah Winfrey’s involvement over the years. She acted as both a spokesperson and board member, but last year she left the company, only months after announcing that she was taking weight loss medication.
This article was originally published on Cheapism
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