- WeightWatchers (WGHTQ, Financial) approved for reorganization plan, aiming to reduce debt by $1.15 billion.
- Lenders receive $465 million in term loans and 91% new equity; existing shareholders get 9%.
- Company focuses on expanding weight management platform post-reorganization.
WeightWatchers (WGHTQ) has secured court approval for its reorganization plan, which is set to significantly reduce its financial burden. The plan aims to lower the company's debt by approximately $1.15 billion, cutting down over 70% of its legacy debt. As part of the reorganization, lenders and noteholders will receive $465 million in new senior secured term loans due by 2030 and 91% of the new common equity. In contrast, existing shareholders will receive 9% of the new common equity.
Throughout the reorganization process, WeightWatchers has continued its normal operations, successfully serving millions of members globally. Following the reorganization, the company intends to focus on expanding its comprehensive weight management platform. This platform integrates community support, behavioral solutions, and medical interventions, including GLP-1 medications, to better serve its health-conscious clientele.
Tara Comonte, Chief Executive Officer of WeightWatchers, emphasized the company's strengthened financial position post-reorganization, stating the firm is poised to capitalize on new opportunities for growth and innovation. WeightWatchers is committed to maintaining its leadership in the weight management industry by delivering robust, science-backed solutions to its global community.
