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WW International has filed for Chapter 11 as its Weight Watchers unit faces heavy competition from prescription weight-loss drugs and struggles under crushing debt.
The financial reorganization will eliminate $1.5B debt from its balance sheet as it expands its robust tele-health operation.
WW’s telehealth program is a “holistic model of care” that features access to obesity-trained clinicians, prescription weight-loss medication and virtual and in-person workshops.
The Chapter 11 filing provides WW with the flexibility to accelerate innovation, reinvest in members and position for growth in the weight management landscape, according to Tara Comonte, WW CEO.
As the focus on weight loss shifts to long-term health, Comonte said “our commitment to delivering the most trusted, science-backed, and holistic solutions—grounded in community support and lasting results—has never been stronger, or more important.”
WW expects to emerge from Chapter 11 in 45 days, or sooner. The company reported a 9.7 percent decline in Q1 revenues to $186.6M and a $72.6M loss.
ICR Inc. has John Mills and Anna Kate Heller handling the financial community, while C Street Advisory Group covers the strategic communications beat for WW.
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