WeightWatchers has filed for bankruptcy in the US as it struggles with debt and fierce competition from fat-loss jabs like Ozempic and Mounjaro.
The legal process will see $1.15bn (£860mn) of the 60-year-old diet brand’s debt written off while it agrees new terms for paying back its lenders.
WeightWatchers said it will remain “fully operational” during the process with “no impact to members”.
It follows the meteoric rise in popularity of weight loss injections in what the firm said was a “rapidly changing weight management landscape”.
“For more than 62 years, WeightWatchers has empowered millions of members to make informed, healthy choices, staying resilient as trends have come and gone,” said chief executive Tara Comonte.
The plans have “the overwhelming support of our lenders”, she said.
In a statement, the brand said its weight-loss programme, “telehealth” scheme, and weight-loss workshops will continue.
WeightWatchers began as weekly weight-loss support group meeting with 400 attendees, and eventually gained millions of members across the globe.
But demand for its programmes has dropped while the popularity of weight-loss drugs such as Wegovy and Zepbound has risen – although the brand does sell weight medications as part of its programmes.
It reported a net loss of $346m (£260m) last year, while its subscription revenues fell 5.6% compared with the year before.
The brand, which had accumulated debt of around $1.6bn, said it “expects [the] reorganisation plan to be confirmed in approximately 40 days and to emerge as a publicly traded company.”
WeightWatchers renamed itself “WW” in 2018 as it shifted to focus on promoting health beyond weight-loss.
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