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WW International (WW.O), also known as WeightWatchers, is preparing to file for bankruptcy in the coming months as part of a plan to hand control of the business to its creditors, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.
Shares of the company tumbled nearly 59 percent to 18 cents in afternoon trading.
The weight management firm has been struggling to stay relevant as highly effective weight-loss drugs, such as Novo Nordisk’s (NOVOb.CO) Wegovy, soared to popularity by offering a quicker fix to obesity, a growing health concern globally.
The company, which offered nutrition and behaviour-change programs for weight loss, bought subscription-based telehealth platform Sequence in 2023 to expand into obesity drug prescriptions.
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WeightWatchers’ stock, which traded as high as $100 in 2018, lost most of its value last year as the company faced revenue declines, liquidity concerns and celebrity shareholder Oprah Winfrey’s decision to exit its board.
The company is negotiating with lenders and bondholders, the WSJ report said, adding that the restructuring discussions are unrelated to the market meltdown and foreign trade tensions due to the Trump administration’s tariff announcement.
The company did not immediately respond to a Reuters request for comment.
By Mariam Sunny; Edited by Alan Barona
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