WeightWatchers bankruptcy: Are weight-loss drugs like Mounjaro and Ozempic to blame for company's demise?

The slimming company, which was founded more than 60 years ago, has been overtaken in recent years by the buzz surrounding weight-loss drugs such as Mounjaro and Ozempic.

The filing in America is a Chapter 11 bankruptcy procedure, which is a specific type of legal process which reorganises a company’s debts to allow it to continue trading. The US government says that a Chapter 11 debtor “usually proposes a plan of reorganization to keep its business alive and pay creditors over time”.

For years WeightWatchers and Slimming World were the giants of weight-loss groups, with millions of people signing up.

But while previously WeightWatchers was seen as trustworthy and with some star quality - with Oprah Winfrey, Tina Fey, James Corden, Lorraine Kelly and Jessica Simpson among the famous endorsers - the ease and accessibility of the new generation of semaglutide weight-loss jabs blew a hole in its business model. Even though it has already moved into prescription weight-loss services - with WeightWatchers Clinic, which prescribes Wegovy, Ozempic and others - this has not been enough to turn around its fortunes.

In December 2023, former CEO Sima Sistani said that the company had “got it wrong” by previously turning its back on weight-loss drugs.

In the bankruptcy filing, WeightWatchers' parent company, WW International Inc., said nearly three-quarters of its creditors supported its plan, which is to become a “telehealth services provider” shifting weight-loss drugs.

It hopes to emerge from bankruptcy in about six weeks with $1.15billion taken off its debt pile. The filing was made in the US Bankruptcy Court for the District of Delaware.

What has Slimming World said?

When rumours of WeightWatchers’ impending bankruptcy started last month, Slimming World's managing director Lisa Salmon said: "The decline of WeightWatchers, a big player in the weight loss industry, is extremely sad given the millions of people whose health and happiness is so seriously impacted by their weight. We can only imagine the upset and uncertainty WW’s coaches, employees and members must be feeling as they hear this news.

“The news that they’re preparing to file for bankruptcy in the coming months means that another lifestyle-based weight loss programme could be removed from the range of options for people wanting to lose weight in this country – and health professionals wanting to support that.

“Weight loss drugs are not the silver bullet for obesity. A poll of 2,000 UK adults, conducted for us by Censuswide late last year, found that 70% weren’t interested in or said they weren’t sure if they’d use weight loss injections. Healthcare professionals need a full range of treatment choices for people without medicalising obesity as the first and only (and costly) option.

“Furthermore, everyone losing weight – with or without weight loss drugs – needs support to make changes to their diet, activity and mindset. And despite living in an increasingly digital age, people enjoy and benefit from the sense of community that comes with being part of an in-person group to receive that support.

“We at Slimming World have stood firm in our tried, tested and trusted approach based around this and want to reassure anyone feeling upset and uncertain at the potential end of a long-standing weight loss organisation, that we’re not going anywhere.”

Slimming World is not a publicly-trading company so does not release annual results.