Following WeightWatchers’ bankruptcy filing, WW International Inc.’s shares dropped more than half in value during premarket trading on Wednesday. The health and wellness company was struggling with growing debt.
Premarket, WW’s shares (WW), which closed Tuesday’s trading session up 11.2%, is down 52%.
Despite suggestions from a major shareholder that a filing would be illogical, the filing occurs around one month after concerns about bankruptcy.
WW announced on Tuesday that it has submitted petitions to the Delaware bankruptcy court that would permit it to carry on with its business, including paying its suppliers and workers as well as its vendors.
WW stated in a statement that it anticipates becoming a publicly traded business and that its restructuring plan will be confirmed in about 40 days. According to the corporation, members won’t be impacted and it will continue to operate normally throughout the reorganization process.
WW said that it has reached a deal with noteholders and lenders to drastically cut its debt, which will remove $1.15 billion in debt from its balance sheet. WW’s 10-Q filing, which was made public after market close on Tuesday, revealed that the company’s total debt as of March 29, 2025, was $1.62 billion.
During a conference call to discuss the results late Tuesday, WW Chief Executive Tara Comonte stated, “Our existing debt has been a significant burden on the business for many years and has resulted in approximately $100 million of annual interest payments in each of the last two years.” “This will reduce our long-term debt obligations from $1.6 billion as we stand today to $465 million moving forward with maturities also extending to 2030.” The company’s expected interest payments will be cut in half, to about $50 million a year, she noted.
WW had 3.4 million subscribers at the end of the first quarter, compared to 4 million at the end of the previous year. Compared to 3.3 million in the previous year’s quarter, just about 2.8 million of the company’s subscribers were digital.
The company’s bankruptcy filing comes after a period of unsatisfactory performance, layoffs, and high employee turnover. The company’s stock first dropped below $1 in August 2024.
However, as WW expanded its offerings to include compounded GLP-1 obesity therapies, the company’s stock skyrocketed in October 2024. Comonte mentioned the “rapid uptake” of GLP-1 usage during the conference call on Tuesday, but he also pointed out that GLP-1s are “a medication, not a miracle.”
“From our own members, we consistently hear that long-term use isn’t the plan,” she stated. Nearly two-thirds of them indicate that they anticipate stopping eventually. And for that reason, a holistic approach to care is important.
As of Tuesday, WW’s stock had fallen 37.8% so far this year and 62.2% in the previous 12 months. Since February 24, it had closed below $1 each day.
