The U.S. has had an obesity problem for decades, with the prevalence of obesity hitting 40.3% amongst American adults in 2023, according to the Centers for Disease Control.
Over the years there have been lots of successful programs that help people lose and manage their weight, but some of these companies have struggled in recent years.
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Jenny Craig closed its physical locations after 40 years in the weight-management business and filed for bankruptcy in 2023. Management cited weight-loss drugs and competition from meal-delivery services like Hello Fresh and Hungry Root. The company was revived by one of its competitors, Nutrisystem, and now sells its programs only online.
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However, Nutrisystem’s owner, Wellful Inc. is having financial problems of its own, as reported by Bloomberg in December and may also be facing bankruptcy since it is unable to pay its debt.
The one thing these companies all have in common is the surging popularity of weight-loss drugs like Ozempic and Mounjaro.
Old-fashioned weight loss methods are no competition for drugs.
Image source: Shutterstock
Effective weight-loss drugs have made it difficult for lifestyle weight-loss programs
The demand for programs that focus on lifestyle changes as a means to weight loss have taken a hit in recent years.
But in 2023, for the first time in years rates fell, and some experts believe the drop was partly due to the increasing use of semaglutide or tirzepatide (aka GLP-1 or GIP), medications.
Ozempic is the most prescribed, but there are nearly a dozen brand-name medications that all function the same way: Wegovy, Saxenda, Zepbound, Adipex, Qsymia, Xenical, Alli, Contrave, and Suprenza.
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These drugs all mimic a hormone that reduces hunger and have been in such demand that there were shortages last year, although manufacturers now seem to have caught up.
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Around one in eight American adults (about 12%) have reported using a GLP-1 drug, with 6% currently using them, according to a KFF Health Tracking Poll. These drugs are very expensive: without insurance, they can cost over $1,000 a month.
WeightWatchers WW stock has lost nearly all of its value
WW International — also known as Weight Watchers — stock traded as high as $100 in 2018 but has faced a series of headwinds. First, the company was affected by revenue declines in both its digital subscriptions and in-person workshop memberships. The company’s attempts to pivot to telehealth and even offer weight-loss drugs as part of its program have not been successful.
As of April 9, 2025 the stock is trading at 0.18, a one-day drop of 62%.
Then, last year, Oprah Winfrey who had been a huge advocate for the brand, crediting it with her own weight loss, left the company’s board. She had joined in 2015 and owned a 10% stake in the company.
“I look forward to continuing to advise and collaborate with WeightWatchers … in elevating the conversation around recognizing obesity as a chronic condition, working to reduce stigma, and advocating for health equity,” Winfrey said in a statement at the time of her departure.
Like so many other Americans, Winfrey credited the use of an unnamed weight-loss drug for her own weight loss. She told People, “The fact that there’s a medically approved prescription for managing weight and staying healthier, in my lifetime, feels like relief, like redemption, like a gift, and not something to hide behind and once again be ridiculed for.”
The company is reportedly negotiating with lenders and bondholders to restructure and, according to a Wall Street Journal report, is preparing to file for bankruptcy although it has not said anything publicly.
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