Ozempic wave forces Weight Watchers to file for bankruptcy
Long the sole leader in weight-loss programs, the company has been overtaken by anti-obesity treatments. On Tuesday, May 6, Weight Watchers filed for Chapter 11 bankruptcy protection in an effort to clear its debts and attempt to revive its business.
On Tuesday, May 6, Weight Watchers, “whose diet and wellness programs were at the heart of fitness culture in the United States,” filed for bankruptcy, a victim of competition from anti-obesity drugs like Ozempic, reports The Wall Street Journal .
Founded in 1963, the company specializing in diets under supervision had nevertheless taken the turn towards medication “as a complement to its traditional economic model.” But this activity “did not grow quickly enough to compensate for the decline in subscriptions to its basic programs.”
"The advent of free fitness apps and advice from influencers on social media" have "provided additional ways for women seeking recommendations to achieve their weight-loss goals," the business daily said.
By filing for Chapter 11 bankruptcy protection, the company, now renamed WW International, is shedding a colossal debt of “approximately $1.5 billion” (€1.3 billion) . CNN explains . This bankruptcy filing “will strengthen its financial position, increase its investment latitude in its growth strategies and allow it to better serve its millions of members around the world,” the company justifies .
But "the program that revolutionized diets for millions of people around the world" has seen its share price plummet to less than $1, notes the American media outlet. At its peak in 2018, it was trading for "around a hundred dollars." Another form of diet...
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