WeightWatchers files for bankruptcy
The company has pivoted toward clinical weight loss solutions, including GLP-1 drugs.
Leadership and strategic shifts have reshaped WW in recent years.
WW International (NASDAQ: WW) has declared bankruptcy to eliminate $1.15 billion in debt, a move the company said will position WeightWatchers for long-term growth and success.
WeightWatchers said operations will continue with no impact on its more than three million members worldwide.
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The 60-year-old company, developed around a behavior modification and community support model, pivoted in April 2023 to also offer clinical weight loss solutions including GLP-1 drugs, acquiring subscription telehealth platform Sequence (now WeightWatchers Clinic) for $132 million. The global market for GLP-1 drugs like Novo Norodisk's Ozempic and Wegovy and Eli Lilly's Zepbound is estimated to grow from $49.3 billion in 2025 to $157.5 billion by 2035.
Sima Sistani, who was CEO of WW during the Sequence acquisition, said at the time that WeightWatchers was at a 'pivotal point' and that offering clinical interventions was 'a natural next step' for the weight loss company.
In May 2023, competitor Noom followed suit, announcing that it was launching a program that included access to a suite of telehealth services and weight-loss drugs along with its psychological tools for weight loss.
Oprah Winfrey, a long-time WW spokesperson and member of the company's board of directors since 2015, disclosed in 2023 that she was taking a weight-loss medication and resigned down from the WW board in February 2024 to avoid any appearance of conflict of interest. Winfrey had acquired a 10% stake in WeightWatchers in 2015, but sold most of her shares in 2023, later donating the rest to the National Museum of African American History and Culture.
Sistani left the company in September 2023 after second-quarter results showed net income down 54.2% to $23.3 million and a 6.1% drop in subscribers. Current CEO Tara Comonte, then a member of the WW board, stepped in the fill the top role on an interim then permanent basis. Comonte was previously CEO of TMRW Life Sciences, a technology company in the reproductive health sector.
"The decisive actions we're taking today, with the overwhelming support of our lenders and noteholders, will give us the flexibility to accelerate innovation, reinvest in our members, and lead with authority in a rapidly evolving weight management landscape," Comonte said.
There has been an increasing push for employers to offer obesity treatments, including anti-obesity medications, as part of their health plans. The Alliance for Women's Health and Prevention called in an open letter to employers in March for coverage for all types of care, from medications to bariatric surgery and nutritional guidance.
But some employers have pushed back, citing the high cost of GLP-1 medications.
WeightWatchers has launched a dedicated web page for members to get more information about the court-supervised restructuring process at www.weightwatchers.com/here-to-stay.
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