One of the oldest names in weight loss has lost most of its value and filed for bankruptcy. This video explores the brand's history while identifying some of the biggest reasons behind its decline.As I usually do, I'm sharing Company Man Mike's list.
Rebranding strikes me as a milder version of Hooters' identity crisis with a side helping of external factors including the pandemic — bad timing, indeed! Speaking of external factors, Weight Watchers had been able to weather its competition until weight loss drugs like Ozempic came along. It didn't take them long to drive Weight Watchers into bankruptcy. As I wrote last month, "WeightWatchers decided that if they couldn't beat Ozempic and other weight loss drugs, they'd join them. Too bad things moved so quickly that they were [too] late to that party."
Oprah Winfrey leaving the company followed by its bankruptcy demonstrates that it was the loss of celebrity influence that may have been the last straw. The company had been depending on celebrity endorsers for decades and without its last one, it declined rapidly.
While I've often seen private equity as a cause of debt leading to failure, I've come across stock buybacks by themselves just three times, and only seen both once in the case of Ruby Tuesday. Now I can say I've run across the combination twice.
I close by quoting a comment and my response on last month's post.
fry1laurie: So Weight Watchers is trying to shed 751,471,011.70 pounds (of debt).Stay tuned for the promised next installment in my coverage of the News & Doc Emmy Awards tomorrow, when I plan on examining The Sixth and the rest of the nominees for Outstanding Politics and Government Documentary. I decided blogging about The Sixth on the sixth would be more appropriate than today.
Me: Welcome to Crazy Eddie's Motie News! HAHAHA! I'm glad the United Kingdom didn't abandon the pound for the Euro just so you could make this joke!
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