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What to Know About The Weight Watchers Bankruptcy
The former dieting company is facing billions in debt and a long shadow of controversy
Former weight loss giant, Weight Watchers, has filed for Chapter 11 bankruptcy in Delaware. The company is hoping to reduce its debt by more than $1 billion. Executives also reported that they plan to keep operations going during this period.
Part of their plan is to have a group of investors take over the majority of stocks. Stockholders will retain nine percent ownership in Weight Watchers after everything is completed.
In a statement on the Weight Watchers corporate website, CEO and President Tara Comonte said the changes will “will give us the flexibility to accelerate innovation, reinvest in our members, and lead with authority in a rapidly evolving weight management landscape…”
That evolving landscape includes competition from social media influencers, free fitness apps, and weight loss drugs. There have been other competitors that have been troublesome for the company as well.
The Weight Watchers app did not land in the top ten apps on the Apple App Store.
Multiple weight loss drugs have sought to take market share and money away from the company. Ozempic, for one, has become a…
