WW International, formerly known as the weight monitor, applied for insolvency protection in Chapter 11 on Tuesday to reduce its debts after the drugs of the popular popular obesity had launched its business model.
The company’s shares, which once had the media mogul Oprah Winfrey as one of his top shareholders, campaigned for 40 percent in extended trade on Tuesday, after announcing plans for the registration of bankruptcy as part of a reorganization plan with a group of his lenders.
Weight guards began as a weekly meeting of the weight loss support group with 400 participants and quickly turned into a worldwide phenomenon with millions of members around the world.
But the increasing popularity of GLP 1 medication such as Ozempic by Novo Nordisk and Wegovy and Eli Lillys Zepbound demand for their traditional weight loss programs.
Winfrey left the WW Board of Directors in February 2024 in order to remove “all perceived conflicts of interest” after she had admitted to taking weight loss drugs, the company said at the time.
About a year earlier, the WW had acquired a telemedicine provider to provide weight loss medication. But last year it reported a loss of $ 345.7, while the revenue from the subscription has dropped by 5.6 percent compared to the previous year.
According to the WW, the restructuring plan is in debt 1.15 billion US dollars from the company’s balance sheet. The company has accumulated considerable debts in US dollars in the United States.
The company has estimated assets and liabilities in the range of $ 1 billion to $ 10 billion.
After his rebranding to WW International in 2018, the company wanted to concentrate more on the overall wellness than just on weight loss.
The company’s shares have dropped 60 percent since the first Wall Street Journal Wall Street Journal reported in April, that the company was preparing for an application for bankruptcy in the coming months.
