WeightWatchers files for bankruptcy as obesity drugs like Ozempic reshape market

NEW YORK – WeightWatchers, known for its diet programmes once endorsed by celebrities including Oprah Winfrey, has filed for bankruptcy after struggling to compete with hugely popular obesity drugs such as Ozempic.

Shares of the company, which rebranded to WW International in 2018, slumped 40 per cent in extended trading on May 6, after announcing its Chapter 11 bankruptcy plan with a group of its lenders.

WeightWatchers was founded in 1963 by Ms Jean Nidetch, who struggled with dieting and was seeking a way to lose weight and maintain it. It began as a weekly weight-loss support group meeting with 400 attendees and quickly turned into a worldwide phenomenon with millions of members across the globe.

But the rising popularity of GLP-1 drugs such as Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound hit demand for its traditional weight-loss programmes.

It also acquired a telehealth provider to provide weight-loss drugs in 2023, but reported a loss of US$345.7 million (S$445.4 million) in 2024, while its subscription revenues fell 5.6 per cent year on year.

WW said the reorganisation plan will eliminate US$1.15 billion in debt from the company’s balance sheet. The company has accumulated substantial debt of around US$1.6 billion.

The company has estimated assets and liabilities in the range of US$1 billion to US$10 billion, according to the Chapter 11 petition filed in Delaware bankruptcy court.

After its rebranding to WW International, the company aimed to focus on overall wellness rather than just weight loss.

It tried to ride the weight-loss drugs wave by offering a few on its platform, but found it challenging to convince clients that its programmes were still worth their time alongside the medications. REUTERS, BLOOMBERG