WeightWatchers, a leading health and wellness company, has begun restructuring discussions with its lenders as it faces significant financial challenges. The talks are in the initial stages, aimed at helping lenders understand the company’s business plan and financial forecasts.
The emergence of weight-loss drugs like Ozempic has led to a decline in revenue for WeightWatchers in recent quarters. The company has over $1.4 billion in loans and bonds maturing in 2028 and 2029, along with a revolving credit facility due next year. To navigate these challenges, WeightWatchers is being advised by Simpson Thacher & Bartlett and PJT Partners.
The lender group is receiving guidance from Gibson Dunn & Crutcher and Houlihan Lokey. This restructuring process may impact the company’s future prospects, making it essential for investors to assess the current situation before making any investment decisions.
Source: https://www.investing.com/news/stock-market-news/weightwatchers-enters-restructuring-talks-with-lenders–wsj-93CH-3868544