• WeightWatchers files for Chapter 11 bankruptcy to eliminate $1.15 billion in debt.
• Company aims to pivot towards telehealth services for weight management.
• WeightWatchers sees significant growth in prescription weight-loss medications.
• First-quarter revenue drops 10%, continuing a trend of declining earnings.
• Operational services will continue without interruption during restructuring.

WeightWatchers has announced its filing for Chapter 11 bankruptcy protection to eliminate approximately $1.15 billion in debt, as it transitions towards becoming a telehealth services provider. The company, through its parent WW International Inc., reports having the backing of nearly three-quarters of its debt holders and anticipates emerging from bankruptcy within 45 days, if not sooner, according to NPR and HuffPost.

WeightWatchers has been facing notable challenges as its customer base shifts towards weight loss drugs, leading to a significant decline in traditional program participation. To adapt, the company acquired Sequence for $106 million, which is now branded as WeightWatchers Clinic, a service providing prescriptions for drugs like Ozempic and Wegovy. Revenue from this clinical subscription rose 57% year over year, amounting to $29.5 million, even as overall first-quarter earnings fell by 10% to $186.6 million, as reported by CBS News and HuffPost.

The recent departure of WW International CEO Sima Sistani led to the appointment of Tara Comonte as interim CEO. Comonte reaffirmed the company's dedication to providing reliable, science-backed health solutions and assured that all services, including workshops and telehealth, would remain operational during this reorganization process, as emphasized by NPR and CBS News.