Weight management company WeightWatchers has filed for bankruptcy protection to reorganize its business due to significant debt burdens.
The company announced that it filed for Chapter 11 bankruptcy at the U.S. Bankruptcy Court for the District of Delaware on May 6. It listed estimated assets and liabilities ranging from $1 billion to $10 billion, with the number of creditors at more than 100,000.
“WeightWatchers has a significant amount of debt on its balance sheet, some of it dating back decades. That’s money that could otherwise be utilized to invest in the business and the member experience,” the company said on its website.
WeightWatchers explored various ways to cut down debt, eventually deciding on a Chapter 11 bankruptcy, which it said allows for “an organized restructuring of a company’s balance sheet.” The bankruptcy does not mean the company is going out of business or liquidating, it clarified….