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.
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. This development signaled potential financial distress and increased likelihood of default within the next six months, according to S&P Global.
Shares of WW International were up nearly 2% at midday Thursday after dropping 62% to 18 cents yesterday. They have been trading under $1 since early February, when reports emerged that restructuring talks had started.
For the complete article, read more at The Wall Street Journal.
