WeightWatchers recordsdata for chapter – what went incorrect?

WeightWatchers has filed for chapter.

The weight loss plan model, which was based greater than 60 years in the past, stated on Tuesday that it was submitting to jot down off $1.15bn of debt and to deal with transitioning right into a distant telehealth providers supplier.

Based in 1963 by American businesswoman Jean Nidetch, the corporate goals to assist members monitor their diets by utilizing a factors system, with the objective to try to keep away from meals with greater factors.

At its peak in 2018, WeightWatchers had 4.5 million subscribers, and its inventory traded as excessive as $100 (£75). However it has since misplaced worth and rebranded to turn out to be WW Worldwide.

Lack of subscribers

The corporate ended 2024 with 3.3 million subscribers, with the income comprised of subscriptions down 5.6% compared to the earlier yr, in keeping with a efficiency report revealed by the corporate.

Its general income for the 2024 monetary yr was $786m (£592m), down 11.7% on the earlier yr.

The report stated the decline was “primarily pushed” by recruitment challenges and the closure of the patron merchandise enterprise.

Whereas the corporate additionally sells a spread of prepared meals, snacks and low-calorie wines, it has been primarily targeted on subscribers.

Massive names leaving the model

In September, WW Worldwide CEO Sima Sistani resigned, and Tara Comonte was named interim chief government.

In a press release on Tuesday, she stated: “Because the dialog round weight shifts towards long-term well being, our dedication to delivering essentially the most trusted, science-backed, and holistic options -grounded in neighborhood assist and lasting outcomes – has by no means been stronger, or extra vital.”

In one other blow to the corporate, Oprah Winfrey, a long-time ambassador, stop the WeightWatchers board final yr.

In March 2024 the tv persona introduced she had stop forward of the airing of a particular programme titled An Oprah Particular: Disgrace, Blame And The Weight Loss Revolution, saying she didn’t desire a “perceived battle of curiosity,” as she needed to publicly talk about her use of weight-loss treatment.

She stated she had donated all of her shares within the firm to the Smithsonian Museum Of African American Historical past And Tradition.

Focusing on the youthful technology

The corporate has additionally struggled to draw youthful prospects.

In an try to take action in 2018, WeightWatchers purchased the app Kurbo.

A yr later, it launched the platform to the general public, aimed toward serving to kids aged between eight and 17 create wholesome habits.

The app adopted a paediatric weight management programme made by Stanford College and supplied 15-minute private coaching periods as a solution to log meals consumption and recipes.

Nevertheless, it was met with criticism by celebrities, together with actress and activist Jameela Jamil, nutritionists and members of the general public, who raised considerations it might make kids obsessive about weight and counting energy.

The affect of weight reduction injections

WeightWatchers has additionally been struggling to maintain up as a key participant within the business because of the introduction of efficient weight reduction medicine, together with Wegovy, created by Danish pharmaceutical firm Novo Nordisk.

The drug soared in reputation by providing a faster repair to weight problems, which is a rising well being concern across the globe.

Some folks additionally take Ozempic to drop some weight.

The treatment, additionally used to deal with Kind 2 diabetes, slows down how shortly meals is digested and might scale back urge for food, making folks eat much less.

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Each Ozempic and Wegovy are completely different model names for a similar injectable drug, semaglutide. The drug works by making you’re feeling fuller for longer.

To try to compete with the booming business, WeightWatchers purchased subscription-based telehealth platform Sequence in 2023 to increase into weight problems drug prescriptions.

In its newest earnings report on Tuesday, WeightWatchers’ first-quarter income declined 10% whereas its loss on an adjusted foundation totalled 47 cents per share.

Nevertheless, it medical subscription income – or weight-loss medicines – jumped 57% yr over yr to $29.5m.

WW Worldwide has stated it expects to emerge from chapter inside 45 days, if not sooner.