WW Stock Plunges 13.53% Amid Debt Concerns, Bankruptcy Fears

On April 29, 2025, WW's stock price plummeted by 13.53% in pre-market trading, sparking concerns about the company's financial health.

WW International, the parent company of Weight Watchers, is facing significant financial challenges due to increasing restrictions on GLP-1 drug compounding and growing competition from weight-loss drugs like Ozempic. The company is grappling with over $1.6 billion in debt, leading to speculation about a potential bankruptcy filing.

Galloway Capital Partners, which holds a 2.87% stake in WW, has urged the company to avoid Chapter 11 bankruptcy. Bruce Galloway, the Chief Investment Officer at Galloway Capital Partners, believes that WW does not meet the criteria for insolvency and should instead pursue an out-of-court restructuring. This approach involves negotiating a deal with creditors to exchange some debt for partial equity, thereby reducing debt while minimizing dilution for current shareholders.

Galloway views WW as a deep value opportunity, citing the company's strong operational base and brand recognition. He argues that the panic in the stock price is disproportionate to the company's financial reality and that a restructuring could preserve significant upside for both the company and its stakeholders.