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WW International Files for Bankruptcy Amid Shift in Weight Loss Industry

WW International, formerly known as WeightWatchers, has filed for Chapter 11 bankruptcy protection in the United States, citing mounting debt and a dramatic decline in demand for its traditional weight-loss programmes.

The move follows the surging popularity of GLP-1 weight-loss drugs, such as Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound, which have significantly disrupted the weight management industry. Once a leader in the sector, WW International is now seeking to restructure its finances under court supervision.

Shares in the company plummeted 40% in after-hours trading on Wall Street following the announcement. The bankruptcy filing, submitted in Delaware, revealed the company holds estimated assets and liabilities between $1 billion and $10 billion.

As part of its reorganisation plan, WW aims to eliminate approximately $1.15 billion in debt. The company is reportedly working with a group of lenders to restructure its obligations and preserve operations during the process. WW’s total debt currently stands at around $1.6 billion.

Founded in the 1960s as a small weight-loss support group, WW grew into a global brand with millions of members and gained high-profile endorsements, including from media icon Oprah Winfrey, who was once one of its largest shareholders.

However, as the weight-loss landscape evolved, WW struggled to keep pace. In an effort to adapt, the company acquired a telehealth provider in 2023 to offer prescription-based weight-loss treatments. Despite this strategic pivot, WW reported a net loss of $345.7 million last year, alongside a 5.6% decline in subscription revenue.

The 2018 rebranding to WW International signaled a shift toward promoting overall wellness rather than just dieting, but this broader focus failed to counter the rapid consumer shift toward pharmaceutical solutions.

In a statement, WW said the bankruptcy protection would allow the company to restructure in a way that “strengthens its financial position and supports its transition in a rapidly evolving industry.”

The firm’s share price has fallen more than 60% since April, when the Wall Street Journal first reported that bankruptcy was being considered.

While the future of the company remains uncertain, WW’s leadership maintains that the restructuring is a necessary step to secure its long-term viability amid the rapid transformation of the weight-loss market.

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