WeightWatchers recordsdata for chapter amid rise of weight-loss medication
CEO Tara Comonte says firm stays dedicated to ‘trusted, science-backed, and holistic options’.
The food plan firm previously often called WeightWatchers has filed for chapter after its 62-year-old enterprise mannequin was put below pressure by the rise of weight-loss medication comparable to Ozempic.
New York-based WW Worldwide stated on Tuesday that it was looking for Chapter 11 chapter safety to eradicate $1.15bn in debt and place the “firm for long-term development and success.”
“The decisive actions we’re taking in the present day, with the overwhelming help of our lenders and noteholders, will give us the flexibleness to speed up innovation, reinvest in our members, and lead with authority in a quickly evolving weight administration panorama,” CEO Tara Comonte stated in a press release.
“Because the dialog round weight shifts towards long-term well being, our dedication to delivering probably the most trusted, science-backed, and holistic options – grounded in neighborhood help and lasting outcomes – has by no means been stronger, or extra necessary.”
WW Worldwide stated it expects to emerge as a publicly traded firm in about 40 days and that members wouldn’t be affected in the course of the reorganisation course of.
Based in 1963 by entrepreneur Jean Nidetch, WeightWatchers turned one of the recognisable manufacturers within the multibillion-dollar food plan trade.
Going through rising strain from medication comparable to Ozempic and Wegovy, the corporate in 2023 acquired telehealth supplier Sequence as a part of a transfer into the weight-loss drugs enterprise.
Final yr, Oprah Winfrey introduced that she was leaving the corporate’s board after beforehand revealing that she was taking anti-obesity treatment.
On Wednesday, shares of Wegovy maker Novo Nordisk rose about 6 % after the Danish firm stated it expects a lift in gross sales in the US after the Meals and Drug Administration ordered a halt to the manufacturing of copycat variations of the treatment by Could 22.
