WeightWatchers Files Chapter 11, Vows its ‘Here to Stay’

Still counting points: The storied weight-loss company says its shedding $1.5 billion of its debt through the filing and is remaining focused on the future

WeightWatchers has filed for Chapter 11 bankruptcy protection in a move it says will dramatically reduce its debt and set the stage for long-term growth.

The confirmation follows a recent Wall Street Journal report that WeightWatchers was preparing to file for bankruptcy amid lender negotiations.

“Today, we took strategic action to significantly strengthen our financial position for long-term growth and profitability, creating the financial flexibility to accelerate innovation and expand our model of care,” the weight management company posted on LinkedIn. “Through a comprehensive agreement with our key financial partners, we will be eliminating $1.15 billion, or more than 70% of our debt, allowing us to deliver lasting value to our members, partners and stakeholders.”

As for WeightWatchers’ three million members worldwide, operations will continue without interruption. The company has also created a comprehensive FAQ page for members.

Late last year, WeightWatchers saw the exit of its CEO and director Sima Sistani, who stepped down after two years at the helm. At the time, WW lowered its full-year outlook and announced layoffs, with Sistani citing a “rapidly changing landscape.” Following Sistani’s exit, Tara Comonte assumed the role of president and CEO.

“For more than 62 years, WeightWatchers has delivered the most effective, holistic solution for healthy, superior results—supported by a member community second to none,” Comonte said in a release. “We are proud to be the most trusted, reliable partner for weight management in the world. Right now, when it seems more people than ever are talking about weight, our commitment to continue to set the bar could not be higher. The steps we’re taking today ensure we will showing up for you for the decades to come.”

Former CEO Sistani pushed back on concerns about the bankruptcy, framing it as a long-overdue financial reset and urging individuals to look beyond clickbait headlines. In a LinkedIn post, she wrote:

“For the people reaching out to me regarding WeightWatchers “bankruptcy” — you’re missing the point,” she wrote. “This is an incredible financial restructuring to finally wipe $1.15 billion dollars of debt (more than 70%) off the balance sheet. Debt NOT from operations of the business, but rather private equity financial arrangements made over decades. I am so proud to see the telehealth strategy proving its worth, growing 57% year over year.”

She added that in less than seven weeks, WeightWatchers “expects to emerge, still publicly traded, with a healthy balance sheet, and the ability to finally trade on performance without the debt overhang.”

“This is good news for their ability to invest in the future of the product and their beautiful community,” she concluded. “Kudos to Tara and the management team for leading through this process!”

In 2023, WeightWatchers made headlines with its acquisition of telehealth platform Sequence, becoming one of the first legacy brands to embrace prescription weight-loss medications. But the landscape quickly grew crowded, with digital health players like Ro, Noom, Hims, Hers and Midi Health entering the space. Fast forward to today, and gyms and fitness equipment companies like Echelon are joining the weight loss medication movement.

By early 2024, longtime board member Oprah Winfrey announced her departure after nearly a decade. She later disclosed she was using weight-loss medication and stepped down to avoid any conflict of interest ahead of her ABC primetime special, “An Oprah Special: Shame, Blame and the Weight Loss Revolution,” which examined the blockbuster drugs and their impact on consumers.

While WeightWatchers charts its new path forward, the company also has also rolled out a refreshed program that offers a modern take on health and wellness, with insurance-covered access to registered dietitians, an AI-powered food scanner for easy nutrition tracking and an expanded ZeroPoint food list.

Last month, WeightWatchers announced a pharmacy integration with Eli Lilly and its provider Gifthealth to streamline fulfillment of FDA-approved Zepbound (tirzepatide) for WeightWatchers Clinic members with on-label prescriptions. Notably, 33% of Clinic members use Zepbound. The partnership also improves access to the popular weight loss medication for self-pay patients without insurance.

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