NEW YORK — WeightWatchers has filed for Chapter 11 bankruptcy protection to eliminate approximately $1.15 billion in debt and refocus its business model on telehealth services. The parent company, WW International Inc., announced that it has secured the backing of nearly three-quarters of its debt holders and anticipates emerging from bankruptcy within 45 days. Recently, WeightWatchers ventured into the prescription drug weight loss market by acquiring Sequence, now known as WeightWatchers Clinic, a telehealth service that assists users in obtaining prescriptions for medications such as Ozempic, Wegovy, and Trulicity. In its latest earnings report, the company revealed a 10% decline in first-quarter revenue and an adjusted loss of 47 cents per share. However, clinical subscription revenue, which includes weight-loss medications, increased by 57% year-over-year to $29.5 million. Tara Comonte, the interim CEO, emphasized the company’s commitment to providing science-backed and holistic health solutions. Shares of the company have traded below $1 since February, and in after-hours trading, the stock fell to 39 cents. The bankruptcy filing was submitted in the U.S. Bankruptcy Court for the District of Delaware.
— new from NPR
