More people are turning to GLP-1 drugs to shed pounds
of ConsumerAffairsMay 7, 2025
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WeightWatchers hopes to eliminate $1.15 billion in debt through Chapter 11 bankruptcy.
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The company will continue operations during the reorganization, with no immediate impact on members.
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The rise of weight-loss medications has disrupted traditional diet programs, prompting WeightWatchers to adapt its business model.
WeightWatchers, officially known as WW International Inc., has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware. The company said the move could eliminate approximately $1.15 billion in debt and support the company’s transition into a telehealth-focused weight-loss provider.
Founded in 1963, WeightWatchers became a household name through its point-based diet programs and in-person support meetings. However, the company has faced significant financial challenges in recent years. The rise of GLP-1 weight-loss medications like Ozempic and Wegovy has disrupted traditional diet programs, leading to a decline in subscriptions and revenue.
In an effort to adapt to the way consumers approach weight loss, WeightWatchers acquired telehealth platform Sequence in 2023, rebranding it as WeightWatchers Clinic to offer weight-loss medications. Despite this pivot, the company’s core subscription model continued to lose favor with consumers. In 2024, WeightWatchers reported a loss of $345.7 million, as subscription revenues declined by 5.6%.
Impact on consumers
WeightWatchers has assured its members that operations will continue uninterrupted during the reorganization process. In a statement, the company said “WeightWatchers remains fully operational during the reorganization process and there will be no impact to members or the plans they rely on to support their weight management goals.”
However, the bankruptcy filing underscores broader shifts in the weight-loss industry. The popularity of weight-loss drugs has challenged traditional diet programs, leading to questions about the future of community-based weight management approaches.
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