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WEIGHT-LOSS COMPANY WeightWatchers has filed for bankruptcy in the US.
The company, which has more than three million users globally, has said that its operations will not be affected as it seeks to eliminate $1.15 billion worth of debt.
The “strategic action” comes amidst reports that the company has struggled to maintain pace as weight-loss drugs like Ozempic have taken the world by storm. Ozempic, a drug originally used to treat diabetes, has become a popular alternative for those looking to use weight.
The 62-year-old company has initiated a pre-packaged chapter 11 process. The company said that the significant amount of debt it has, some of which dates back decades, has led it to undergo an “organised restructuring” of the company’s balance sheet.
The company has stressed that it will remain operational as it undergoes this process, and that all investors and users will remain unaffected.
CEO Tara Comonte said of the decision to undergo the process, “As the conversation around weight shifts toward long-term health, 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.”
The company’s stocks have dropped dramatically in the last few years, tumbling from a high of around $100 dollars in 2018 to a penny stock. It said that it expects to reemerge from its chapter 11 process as a publicly traded company.
Talk show host Oprah Winfrey last year left the company’s board after a tenure of almost a decade. The year prior to her departure she revealed that she was taking a weight-loss drug.
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