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WeightWatchers Stock Pauses After Tumbling on Report of Looming Bankruptcy
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Shares of WW International ( WW ), better known as WeightWatchers, rebounded slightly Thursday after plummeting more than 60% yesterday on a report that the company is preparing to file for bankruptcy.
The Wall Street Journal reported Wednesday that WW International was "preparing to file for bankruptcy in the coming months as part of a plan to hand control of the business to its creditors." The company has more than $1.4 billion in loans and bonds that are coming due in 2028 and 2029, the Journal said.
In February, S&P Global downgraded WW International's credit rating after the company said it had drawn down the full $175 million of a revolving credit facility. The development signaled that "the company is in financial distress and it is increasingly likely it will default, which could include a bankruptcy or an out of court restructuring, over the next six months," S&P Global said.
Shares of WW International were up nearly 2% at midday Thursday after tanking 62% to 18 cents yesterday. They have been trading under $1 since early February, when reports emerged that the restructuring talks had started.
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