May 7 (UPI) -- The WeightWatchers weight loss brand has filed for bankruptcy.
The company said in a press release Tuesday that "it will implement a financial reorganization transaction that will bolster its financial position, increase investment flexibility in its strategic growth initiatives, and better serve its millions of members around the world."
The transaction is designed to eliminate $1.15 billion in debt, which the company says will reposition it for "long-term growth and success," and that the fiscal changes WeightWatchers can "execute its transformation plan, which includes innovating its digital and member experience and accelerating the expansion of its telehealth business."
WeightWatchers expects to emerge from the reorganization process in around 45 days. The financial move will also ensure "all trade creditors and other general unsecured creditors will be paid in full." The company said it "intends to remain a publicly traded company upon emergence from the process."
WeightWatchers also said in the release that it will remain "fully operational during the reorganization process and there will be no impact to members or the plans they rely on to support their weight management goals."
"For more than 62 years, WeightWatchers has empowered millions of members to make informed, healthy choices, staying resilient as trends have come and gone," said CEO Tara Comonte in the release, and that "The decisive actions we're taking today, with the overwhelming support of our lenders and noteholders, will give us the flexibility to accelerate innovation, reinvest in our members, and lead with authority in a rapidly evolving weight management landscape."
