WW Worldwide, previously often called WeightWatchers, has filed for Chapter 11 chapter safety on Tuesday in a bid to chop its debt after massively widespread weight problems medication upended its enterprise mannequin.
Shares of the corporate, which as soon as boasted media mogul Oprah Winfrey as one among its prime shareholders, slumped 40 per cent in prolonged buying and selling on Tuesday after saying plans to file for chapter as a part of a reorganization plan with a gaggle of its lenders.
WeightWatchers started as weekly weight-loss assist group assembly with 400 attendees and shortly was a worldwide phenomena with hundreds of thousands of members throughout the globe.
However the rising recognition of GLP-1 medication comparable to Novo Nordisk’s Ozempic and Wegovy and Eli Lilly’s Zepbound hit demand for its conventional weight-loss applications.
Winfrey left the WW board of administrators in Feb. 2024 to eradicate “any perceived battle of curiosity” after she admitted to taking weight-loss medication, the corporate mentioned on the time.
A few 12 months earlier, WW had acquired a telehealth supplier to offer weight-loss medication. Nevertheless it reported a lack of $345.7 US million final 12 months, whereas its subscription revenues fell 5.6 per cent year-over-year.
WW mentioned the reorganization plan will eradicate $1.15 billion US in debt from the corporate’s steadiness sheet. The corporate has amassed substantial debt of round $1.6 billion US.
The corporate has estimated property and liabilities within the vary of $1 billion to $10 billion US, in keeping with the Chapter 11 petition filed in Delaware chapter courtroom.
After its rebranding to WW Worldwide in 2018, the corporate aimed to deal with general wellness somewhat than simply weight reduction.
The corporate’s shares have slumped 60 per cent because the Wall Avenue Journal first reported in April that the corporate was getting ready to file for chapter within the coming months.
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