WeightWatchers, a 62-year-old health and wellness company that has faced stiff competition from new weight-loss drugs and programs, filed for bankruptcy on Tuesday in an effort to reduce its debt by more than $1 billion while it expands its telehealth business.
In its heyday, WeightWatchers shaped how millions of people in the United States and beyond ate and exercised. Oprah Winfrey was once a spokeswoman and board member.
But the company has struggled to keep its customers as people turn to weight-loss medications, fitness apps and social media influencers.
Under a bankruptcy plan filed in Delaware, WeightWatchers will be taken over by a group of investors, the filing said. Existing shareholders will retain a 9 percent stake once the process is completed in about 45 days, and the company will continue operating.
The changes “will give us the flexibility to accelerate innovation, reinvest in our members, and lead with authority in a rapidly evolving weight management landscape,” Tara Comonte, the chief executive of WeightWatchers, said in a statement.
WeightWatchers was founded in New York City by Jean Nidetch, an entrepreneur who had shed 72 pounds by adhering to a strict diet with the support of her friends. She charged dieters a fee to attend periodic meetings, where they were encouraged to keep track of what they ate and to motivate one another.
The company evolved by adding an exercise regimen and a point system that quantified appropriate food portions. Now it offers weight-loss programs and fitness coaching on its mobile app and website.
In 2022, the company paid a $1.5 million penalty as part of a settlement after the Federal Trade Commission said that its weight-loss app for children had illegally collected personal information from minors. Pediatricians criticized the app, warning that weight-loss programs for children could lead to eating disorders.
The company has also faced headwinds in recent years from rising demand for Ozempic, Wegovy, Zepbound and other drugs that help people lose weight in part by suppressing appetite.
WeightWatchers rebranded as WW International in 2018 as part of an effort to broaden its focus beyond weight loss. In 2023, it acquired Sequence, a subscription-based telehealth platform, and began offering weight-loss medications.
The company’s latest earnings report on Tuesday showed that its revenue from its clinical business, including prescription drugs, had grown 57 percent year-on-year. But its first-quarter revenue had declined by 10 percent.
The coronavirus pandemic resulted in a significant drop in people who attended in-person WeightWatchers meetings, prompting the company to reduce the number of meetings it offered.
WeightWatchers has also lost one of its most prominent spokeswomen, Ms. Winfrey.
She joined its board in 2015, and credited WeightWatchers with helping her lose 40 pounds. But last year, months after she announced that she was taking a weight-loss medication, the company said that she was leaving.
Months later, WeightWatchers’ shares, which had soared to about $100 in 2018, became a penny stock. They closed at 79 cents on Tuesday.
