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What You Should Know:
– WeightWatchers, today announced a significant financial reorganization transaction designed to strengthen its balance sheet, enhance investment in strategic growth areas, and continue serving its global member base.
– The move will see the Company eliminate $1.15B in debt, positioning WeightWatchers for sustained long-term growth and success.
– WeightWatchers aims to accelerate its ongoing transformation plan. Key focus areas include innovating its digital platform and member experience, as well as rapidly expanding its telehealth business, which reported a robust 57% year-over-year revenue growth in the first quarter of 2025.
Operations Uninterrupted: Commitment to Members and Partners Remains
WeightWatchers has emphasized that its operations will continue as normal throughout the reorganization process. There will be no disruption to members or the weight management plans they utilize. The company’s comprehensive model of care—which includes its leading doctor-recommended weight loss program, telehealth services providing access to obesity-trained clinicians and prescription weight-loss medications, and its virtual and in-person workshops—will remain fully operational.
Furthermore, WeightWatchers has stated that all trade creditors and other general unsecured creditors will be paid in full. The Company also intends to remain a publicly traded entity upon completion of the process.
“Pre-Packaged” Chapter 11 Filing
The reorganization is supported by an agreement with holders representing approximately 72% of the outstanding principal amount of the Company’s term loan facility, revolving credit facility, and 4.5% senior secured notes. To implement the transaction efficiently, WeightWatchers has voluntarily initiated “pre-packaged” Chapter 11 cases in the United States Bankruptcy Court for the District of Delaware.
The Company anticipates a swift journey through this court-supervised process, aiming to emerge from reorganization in approximately 45 days, or potentially sooner.
“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 Tara Comonte, Chief Executive Officer of WeightWatchers. “The decisive actions we’re taking today, with the overwhelming support of our lenders and noteholders, will give us the flexibility to accelerate innovation, reinvest in our members, and lead with authority in a rapidly evolving weight management landscape. As the conversation around weight shifts toward long-term health, our commitment to delivering the most trusted, science-backed, and holistic solutions—grounded in community support and lasting results—has never been stronger, or more important.”
Details of the Financial Restructuring
The financial reorganization includes several key components aimed at improving the company’s fiscal health:
- Retention of $175M previously drawn by the Company from its revolving credit facility.
- A reduction of annual interest expense by approximately $50 million.
- An extension of its debt maturity runway.
Upon Court approval, lenders under the Company’s revolving credit facility and term loan facility, along with holders of its 4.5% senior secured notes, will receive a pro rata share of (i) $465 million in new senior secured debt due 2030 (which may be in the form of term loans or senior secured notes), and (ii) 91% of the new common equity in the reorganized Company (subject to dilution from an equity incentive plan).
