Weight Watchers is Skinny on Cash
Earlier this week, Weight Watchers filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware. The good news is that their website stated that members will be unaffected.
What Went Wrong with Weight Watchers?
As I’ve stated consistently throughout my blogs and YouTube videos, businesses need to be fluid and constantly adapt. I even love to quote one of my favorite songs, “The Times Are a Changin…” by Bob Dylan.
To their credit, Weight Watchers has made adjustments such as ending in-person meetings to save money. Maybe there was an “Oprah Effect” since Oprah Winfrey left the board last year. Reports also indicate that the popularity of obesity drugs also affected their bottom line.
Per MSN, Weight Watchers has had six straight years of declining revenue. Per Axios, its losses have totaled more than $700 million over the last three years.
One negative with large corporations is their inability to adjust quickly, versus that of a small business. So keep that in mind as a business owner because if you see the opportunity and reason to adapt, you can do so quickly. This is why it’s important to always focus on trends with your business.
I’m the first one to admit that it is difficult as you are running a business and have to focus on earning revenue and wear multiple hats, but for lack of a better term, there’s no other choice. Luckily, I’ve seen trends in my business and have adapted accordingly.
This was most evident during the mortgage foreclosure crisis of 2008, where loan modifications and foreclosure defense became new areas of practice for me that were successful revenue-wise. So sometimes that small adjustment provides a substantial windfall.
The good news is that Weight Watchers may wrap up their bankruptcy within a couple of months. That’s common with large corporations that file Chapter 11 bankruptcy to reduce their debt, then have a lender waiting in the wings to refinance that debt. That’s something referred to as “pre-packaged” bankruptcy petitions.
Colleges and universities can purchase my bankruptcy law textbook directly from Routledge Publishing. Paralegals and students who are buying single copies can do so via Amazon Books. To access my YouTube channel, click this link. You can also listen to my podcast on Spotify.
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Please note that the information on this site does not constitute legal advice and should be considered for informational purposes only.
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