WeightWatchers faces bankruptcy as dieters turn to jabs

WeightWatchers is preparing to file for bankruptcy amid a boom in blockbuster drugs targeted at dieters.

The New York-headquartered company is preparing to begin Chapter 11 proceedings over the coming months as part of a plan to hand control to creditors, according to reports.

It comes as weight loss drugs such as Wegovy have exploded in popularity on both sides of the Atlantic, sparking a collapse in demand for services such as WeightWatchers.

Founded in 1963 by the American businesswoman Jean Nidetch, the company helps users monitor their diets by attributing scores to different foods. It also sells a range of ready meals and low-calorie wines.

The company was recently downgraded by ratings group S&P Global, which said it was struggling to attract younger customers, after revenues fell by $104m to $786m in 2024. Its share price has plunged by more than 90pc over the past year.

It suffered a further blow last year when Oprah Winfrey stepped down as a member of its board after almost a decade. It came after the celebrity TV show host admitted that she had used weight loss drugs as a “maintenance tool”.

The Wall Street Journal said bosses would rather restructure the company’s balance sheet out of court, but a formal process is more realistic because WeightWatchers is listed on the stock market.

It echoes a similar struggle at meal replacement maker SlimFast, which has been put up for sale by its owner Glanbia after a drop in sales.

Weight loss jabs such as Wegovy and Mounjaro work by slowing the speed at which users’ stomachs are emptied, which makes them feel fuller for longer.

While Ozempic is arguably the best known of these drugs, it is designed to treat type 2 diabetes and not marketed for weight loss – although it is commonly used off-prescription.

About half a million Britons have used these drugs, according to reports, while more than 10pc of American adults used them last year. Morgan Stanley has predicted that the market for them across the world could hit $105bn (£81.3bn) by 2030.

The rise to prominence of these drugs has sparked panic in the food and drink industry, amid concerns they could damage sales of a wide range of goods. The chief executive of Walmart previously blamed them for a reduction in basket size. It has also been suggested they could help with the treatment of alcoholism because they reduce cravings.

WeightWatchers did not immediately respond to a request for comment.