Weightlifter viewer bankruptcy files after weight loss drug dumping industry

WW International (formerly known as the “weightlifter observer”) filed for Chapter 11 bankruptcy protection Tuesday to cut its debts after its business model was extremely popular.

The company's stock once boasted that media tycoon Mogul Oprah Winfrey was one of its top shareholders, down 40% in expansion trading Tuesday after announcing plans to file for bankruptcy as part of the restructuring plan.

Weightlifters started as a weekly weight loss group meeting with 400 attendees and quickly turned into a world phenomenon with millions of members around the world.

But the popularity of GLP-1 drugs such as Novo Nordisk's Ozempic and Wegovy and Eli Lilly's Zepbough for their traditional weight loss programs.

The company said at the time that Winfrey left the WW board in February 2024 to eliminate “any perceived conflict of interest” after she admitted to taking weight loss drugs.

About a year ago, WW had acquired telemedicine providers to provide weight loss medication. But it reported a loss of $345.7 billion last year, while its subscription revenue fell 5.6% year-on-year.

WW said the restructuring plan would remove $1.15 billion in debt from the company's balance sheet. The company has amassed a large amount of debt of about $1.6 billion.

According to a Chapter 11 petition filed by the Delaware Bankruptcy Court, the company's assets and liabilities range from $1 billion to $10 billion.

After renaming its brand as WW International in 2018, the company aims to focus on overall health, not just weight loss.

The company's stock has fallen 60% since the Wall Street Journal first reported in April that the company is preparing to file for bankruptcy in the coming months.