Weight Watchers bankruptcies: WW International files for Chapter 11, marking a major fall for the former weight loss giant.
Founded in 1963, the brand built its empire through in-person meetings and its signature points system. But on Tuesday, the company announced it was seeking bankruptcy to erase $1.5 billion in debt and reorganize its business.
“The decisive actions we’re taking today…will give us the flexibility to accelerate innovation and reinvest in our members,” said CEO Tara Comonte, formerly of Shake Shack.
The company says operations will continue as normal and expects to emerge from bankruptcy in about 40 days as a publicly traded firm.
What Did WW Do Wrong?
The stock price of WW, which was formerly valued at $100 per share in 2018, has fallen to the level of penny stocks.
Former CEO Sima Sistani spearheaded a botched digital transformation by purchasing a telemedicine platform that linked patients with physicians prescribing GLP-1 weight loss drugs like Ozempic. Sistani lost her position in September 2024 after the gamble failed.
The February 2025 financial report revealed a 12% drop in customers and $100 million in yearly interest payments. The number of members decreased from its peak of 3.3 million by the end of 2024.
To make matters worse, Oprah Winfrey, a longtime supporter and board member, stepped down in 2024 and donated all of her shares to the National Museum of African American History and Culture. Her public revelation that she also used a weight-loss drug eroded further trust in the WW brand.
A 62-Year Legacy in Crisis
Jean Nidetch, the company’s founder, once said, “It’s choice, not chance, that determines your destiny.” Her emotional support-based method helped her lose and maintain a 70-pound weight loss.
But the rise of pharmaceutical solutions like Ozempic and Wegovy have sidelined calorie-counting apps and point-based programs.
While WW International tries to reinvent itself, its bankruptcy marks a sharp fall from grace for the iconic brand that once defined dieting.
Source: CNN
