WeightWatchers Files for Bankruptcy Amid New Weight-Loss Drug Competition
New York, Wednesday, 7 May 2025.
WeightWatchers, burdened by $1.5 billion in debt, files for Chapter 11 bankruptcy to eliminate debt and adapt to the rise of weight-loss drugs, planning to emerge reorganized in 40 days.
Financial Reorganization and Debt Elimination
WeightWatchers initiated a strategic financial reorganization on May 6, 2025, aiming to eliminate $1.15 billion in debt through a pre-packaged Chapter 11 bankruptcy filing in Delaware [1]. The company has secured support from approximately 72% of its lenders and noteholders, positioning itself for a swift emergence from bankruptcy [2]. Under the restructuring plan, WeightWatchers expects to reduce its annual interest expenses by $50 million while retaining $175 million from its revolving credit facility [2].
Operational Transformation and Telehealth Growth
Despite recent challenges, including six consecutive years of revenue decline and losses exceeding $700 million over the past three years [3], WeightWatchers has shown promising growth in its telehealth division. The company reported a 57% year-over-year revenue growth in its telehealth business during Q1 2025 [2]. With over three million members worldwide, operations will continue uninterrupted during the reorganization process [4].
Leadership Changes and Strategic Pivot
The company has undergone significant leadership changes, with former CEO Sima Sistani’s departure in September 2024 following a controversial turnaround strategy [5]. Current CEO Tara Comonte, who assumed permanent leadership in February 2025, emphasizes the company’s commitment to innovation and adaptation in the evolving weight management landscape [4]. Adding to the company’s challenges, longtime board member and influential investor Oprah Winfrey departed in February 2024, donating her entire stock holdings to a museum [1].
Future Outlook and Market Position
WeightWatchers anticipates emerging from bankruptcy by mid-June 2025, maintaining its status as a publicly traded company [2]. This represents a dramatic shift for the organization, which has seen its revenue decline from a peak of $1.84 billion in 2012 to $786 million in 2024 [3]. The company’s transformation strategy focuses on enhancing its digital and member experience while expanding its telehealth business, adapting to a market increasingly dominated by pharmaceutical weight loss solutions [2].