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WW International, formerly known as WeightWatchers, is reportedly preparing to file for bankruptcy in the coming months as part of an effort to give business control to its creditors, sources with knowledge of the situation confirmed to the Wall Street Journal on Wednesday (April 9).
The reported decision comes as WW International's shares dropped nearly 59% to 18 cents in afternoon trading on Wednesday. The weight management firm, which initially found success in the 1960s before expanding over the next few decades, has struggled to stay relevant amid the emergence of popular weight loss drugs, such as Novo Nordisk's Wegovy, which offer a quicker fix to obesity.
WW International, which offered nutrition and behavior change programs, purchased the telehealth subscription platform Sequence in an effort to include the prescription drugs into its services in 2023. The company's stock, which at one point traded up to $100 in 2018, has since faced sharp revenue declines, liquidity concerns and the departure of celebrity billionaire Oprah Winfrey from its board of directors in recent years.
WW International is reportedly negotiating with lenders and bondholders on restructuring discussions, however, the sources claimed that the moves were not made in relation to the market meltdown and foreign trade tensions created by President Donald Trump's administration's tariff announcement.