WeightWatchers prepares to file for bankruptcy as stock plummets

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Stock markets in North America was a roller coaster on Wednesday and Thursday after U.S. President Donald Trump paused his so-called “reciprocal” tariffs on most nations for 90 days — though Canada was excluded from the reprieve while Trump further raised his tax rate on Chinese imports.

But despite the market recovery, WW International, Inc. — owner of WeightWatchers — had a notably bad day and saw its shares crash over 62%.

The collapse came at the heels of reports that the health-and-wellness company was preparing to file for bankruptcy should negotiations fail, the Wall Street Journal reported.

The rise of quick-fix weight-loss drugs such as Ozempic, Wegovy and Mounjaro has been a rude awakening for WeightWatchers, which was designed as less of a diet and more of a lifestyle change.

But people looking for that physical change were attracted to the drugs that appear to guarantee weight loss with less effort involved.

Celebrities that used to be tied to the brand have undergone makeovers with help from the new generation of drugs, most notably Oprah Winfrey, who was once a prominent WeightWatchers spokesperson and even joined the company’s board in 2015 and acquired a 10% stake at the time.

But after shares hit an all-time low amid declining sales in March 2023, Winfrey — who has admitted to using weight-loss medication — stepped down from the board a year later, resulting in WW’s stock to continue its downward spiral.

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WW reported an operating loss of $236.2 million for fiscal 2024 and a net loss of $345.7 million, according to the WSJ.

On Wednesday, its market value, which peaked at $6.7 billion — was at just $33.3 million.

Ozempic maker Novo Nordisk, on the other hand, is valued at $2.6 trillion.

Last month, WW took the remaining $121 million from a $175 million loan due in April 2026, which the company said was for financial flexibility rather than immediate bills.

The company also has more than $1.4 billion of loans and bonds due in 2028 and 2029, on top of the $175 million due next year.

WeightWatchers, which was founded in 1963, follows in the footsteps of Jenny Craig, which announced in May 2023 it was shutting down after four decades of operation after failing to secure additional financing.