WW International Seeks Bankruptcy Protection to Ease Debt Burden

Published 2 days agoWW

WW International Seeks Bankruptcy Protection to Ease Debt Burden

WW International, known previously as WeightWatchers, has initiated Chapter 11 bankruptcy proceedings in the U.S. Bankruptcy Court for the District of Delaware. The move, which was filed on May 6, 2025, is aimed at restructuring the company and addressing its heavy financial liabilities, reports Axios.

The company is focusing on slashing a hefty $1.15 billion of debt as part of a prepackaged restructuring deal with select lenders. This financial maneuver follows a tough year where WW International recorded losses of $345.7 million, aggravated by a 5.6% decline in subscription revenues. The challenges are compounded by the growing popularity of GLP-1 weight-loss medications, such as Wegovy, which have deeply affected demand for traditional dieting solutions. As noted by Reuters, these developments were not well-received by the market, leading to a 40% drop in the company's stock value in after-hours trading.

Amidst these financial hurdles, WW International has faced leadership changes and a credit rating downgrade by S&P Global Ratings to 'CCC-' due to high default risk earlier this year. The company sees the bankruptcy protection as a critical step towards repositioning itself in a challenging market environment and addressing the heightened competition from new weight-loss medications.

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