WeightWatchers has filed for bankruptcy and is changing its focus to telemedicine

One of the best-known brands in weight management, WeightWatchers, has filed for bankruptcy. The company announced that it will begin a Chapter 11 restructuring to write off $1.15 billion in debt and focus on a new line of business – telemedicine weight loss services.

WeighWatchers has filed for Chapter 11 bankruptcy to write off $1.15 billion in debt and focus on a new line of business – telemedicine weight loss services.

From diets to prescriptions: how WW’s business model is changing

The parent company of WW International said it has secured the support of about 75% of its debt holders. The restructuring process is scheduled to be completed within 45 days.

WeightWatchers was founded more than 60 years ago and for decades was associated with scoring systems, group support and offline clubs. However, in recent years, interest in traditional dieting has waned and the company has begun to shift its focus to digital and health solutions.

WeightWatchers is a company that has been working on a number of digital and health solutions.

In 2023, WW acquired telemedicine startup Sequence for $106 million, which now operates under the WeightWatchers Clinic brand and allows users to get prescriptions for drugs like Ozempic, Wegovy and Trulicity – some of today’s most popular weight-loss products.

WWe’ve also acquired a telemedicine startup called Sequence for $106 million.

Prescription subscription profits rise – revenue falls

According to a report for the first quarter of 2024, the company’s total revenue fell 10 percent and its adjusted loss was 47 cents per share. Meanwhile, health care subscriptions brought in $29.5 million – up 57% from the same period last year.

This has not been enough to stabilize the business, however. WW stock has traded below $1 since early February, and its off-exchange value has nearly halved to $0.39 since the bankruptcy filing.

New leadership and change of focus

In September 2023, CEO Seema Sistani stepped down from her position. Her place was first taken by board member and former Shake Shack director Tara Comonte as interim CEO, and now she’s been officially confirmed as CEO.

In a statement, Comonte emphasized: “As the conversation about weight increasingly turns to long-term health, our mission is to offer evidence-based, reliable and comprehensive solutions. We remain committed to community support and sustainable results.”

The bankruptcy petition was filed in the U.S. Bankruptcy Court for the District of Delaware.

The story WeightWatchers files for bankruptcy and shifts focus to telemedicine was first published on ITZine.ru.