WeightWatchers files for Chapter 11 to reduce $1.15bn debt

July 2025 | DEALFRONT | BANKRUPTCY & CORPORATE RESTRUCTURING

Financier Worldwide Magazine

July 2025 Issue

In a bid to cut its debt after popular obesity drugs overturned its business model, WW International, Inc., formerly known as WeightWatchers, along with certain of its affiliates, has filed for Chapter 11 bankruptcy protection.

The filing will facilitate a financial reorganisation transaction that will bolster WeightWatchers’ financial position, increase investment flexibility in its strategic growth initiatives, and better serve its millions of members around the world.

The reorganisation agreement entered into is between WeightWatchers and holders of approximately 72 percent of the outstanding principal amount of the company’s term loan facility, revolving credit facility and 4.5 percent senior secured notes, that have committed their support for the transaction.

The transaction will eliminate $1.15bn in debt from the company’s balance sheet and position it for long-term growth and success. With this improved financial foundation, WeightWatchers will be able to execute its transformation plan, which includes innovating its digital and member experience and accelerating the expansion of its telehealth business which delivered 57 percent year over year revenue growth in Q1 2025.

The global leader in science-backed weight management, WeightWatchers provides an accessible, holistic model of care through its doctor-recommended Points Program, clinical interventions including weight-loss medications, and community support. Since 1963, the company has empowered its millions of members to build healthy habits to live longer lives.

WeightWatchers remains fully operational during the reorganisation process and there is expected to be no impact to members or the plans they rely on to support their weight management goals. Additionally, all trade creditors and other general unsecured creditors will be paid in full.

Moreover, the company expects to move through the reorganisation process swiftly, with the goal of emerging from the court-supervised reorganisation process in approximately 45 days, if not sooner. Upon emergence, WeightWatchers intends to remain a publicly traded company.

“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 of WeightWatchers. “The decisive actions we are taking 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.”

Serving as lead counsel is Simpson Thacher & Bartlett LLP, with Young Conaway Stargatt & Taylor, LLP serving as Delaware co-counsel. PJT Partners and Matthews South, LLC are serving as investment bankers, with Alvarez & Marsal serving as restructuring adviser. Serving as communications adviser is C Street Advisory Group, with ICR serving as investor relations adviser.

To an ad hoc group of lenders and noteholders that entered into the reorganisation agreement, Gibson, Dunn & Crutcher LLP is serving as legal adviser and Houlihan Lokey is serving as investment banker.

Ms Comonte concluded: “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.”

Fraser Tennant