WeightWatchers Files Chapter 11 To Erase $1.15 Billion Debt, Shifts Toward Telehealth Drug Services

WeightWatchers filed for Chapter 11 bankruptcy on Tuesday to eliminate $1.15 billion in debt, according to NPR. Parent company WW International Inc. said it has support from nearly 75% of debt holders and expects to emerge from bankruptcy within 45 days. In 2023, it acquired Sequence for $106 million, rebranding it as WeightWatchers Clinic, a telehealth platform that helps customers access prescriptions for drugs like Ozempic, Wegovy, and Trulicity. WeightWatchers reported a 10% drop in first-quarter revenue and a 47-cent adjusted loss per share, but saw clinical subscription revenue rise 57% year over year to $29.5 million.