Weight Watchers Faces Bankruptcy Crisis

Weight Watchers Faces Financial Crisis as Bankruptcies Surge Among Franchise Owners

April 10, 2025

New York, NY – Weight Watchers, the once-dominant weight loss and wellness company, is grappling with a growing financial crisis as multiple franchise owners file for bankruptcy amid declining membership and rising competition.

Franchise Owners Struggle to Stay Afloat

Over the past year, at least a dozen Weight Watchers franchise locations across the U.S. have shut down, with several owners citing unsustainable operating costs and dwindling customer interest. The company, which rebranded as WW International in 2018 to emphasize a broader wellness approach, has struggled to retain its core audience in the face of free calorie-tracking apps, telehealth weight loss programs, and the popularity of drugs like Ozempic and Wegovy.

One franchisee in Ohio, who spoke on condition of anonymity, told reporters, 'The business model just doesn’t work anymore. People don’t want to pay for weekly meetings when they can get instant results with medication or use free apps.'

Stock Plunge and Debt Woes

WW International’s stock has plummeted more than 90% since its peak in 2018, and the company is now burdened with over $1.5 billion in debt. In March 2025, the firm announced cost-cutting measures, including layoffs and the closure of some corporate offices, but analysts remain skeptical about its long-term viability.

'Weight Watchers failed to adapt quickly enough to the digital health revolution,' said Rebecca Harris, a wellness industry analyst at Bernstein Research. 'Their pivot to wellness was too late, and now they’re being squeezed by cheaper, more convenient alternatives.'

Oprah’s Exit Adds to Troubles

The company’s struggles worsened after media mogul Oprah Winfrey, a major shareholder and board member, announced her departure in early 2024. Winfrey had been a key figure in rebranding efforts, but her exit signaled a loss of confidence in the company’s direction.

What’s Next for Weight Watchers?

Industry experts suggest that Weight Watchers may need to explore drastic measures, such as a full digital transformation or even a bankruptcy restructuring, to avoid collapse. Meanwhile, former members lament the decline of a brand that once defined weight loss culture.

'I lost 50 pounds with Weight Watchers years ago,' said Linda Martinez, a former customer from Texas. 'It’s sad to see it struggling like this. The meetings kept me accountable—it wasn’t just about the scale.'

As the company fights to stay relevant, the question remains: Can Weight Watchers reinvent itself one more time, or is this the end of an era?

—Reporting by James Carter, Financial Times

For updates on this developing story, follow #WeightWatchersBankruptcy on social media.

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