WeightWatchers, now known as WW International, has filed for Chapter 11 bankruptcy after 62 years of operation. The company, which is struggling with approximately $1.5 billion in debt, aims to strengthen its financial position and invest in growth strategies. Despite recent challenges, including a failed conversion plan and declining membership, the company plans to continue its operations normally during the bankruptcy process.
The weight loss program has struggled to adapt to new trends, such as GLP-1 medications, and has seen a 12% decrease in membership. Former CEO Sima Sistani was ousted after a lackluster pivot to telehealth for weight management. She has been replaced by former Shake Shack CFO, Comonte.
Notably, Oprah Winfrey, a significant investor and board member, left the company, and her shares were donated to a museum. WW’s original founder, Jean Nidetch, developed the program based on personal experiences with dieting, and its success is often attributed to the point system that simplifies calorie counting. However, the company’s stock has significantly declined since its peak in 2018, reflecting ongoing financial struggles.
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