April 9, 2025
(Reuters) – WW International may be preparing to file for bankruptcy in the coming months as part of a plan to hand control of the business to its creditors, the Wall Street Journal reported on Wednesday, citing people familiar with the matter. Shares of the company tumbled nearly 59% to 18 cents in afternoon trading.
The weight management firm has been struggling to stay relevant as highly effective weight-loss drugs, such as Novo Nordisk’s Wegovy, and Lilly’s Mounjaro soared to popularity by offering a quicker fix to obesity.
In February, S&P Global downgraded WW International’s credit rating after the company said it had drawn down the full $175 million of a revolving credit facility. The development signaled that “the company is in financial distress and it is increasingly likely it will default, which could include a bankruptcy or an out of court restructuring, over the next six months,” S&P Global said.