WW International (NASDAQ:WW), Inc., formerly known as Weight Watchers International Inc., received a notification on May 9, 2025, from the Nasdaq Listing Qualifications Department indicating the company’s common stock will be delisted. The decision follows the voluntary commencement of prepackaged Chapter 11 bankruptcy cases by the company and certain subsidiaries on May 6, 2025. According to InvestingPro data, the stock has fallen nearly 78% over the past year, currently trading at $0.37, with the company’s market capitalization shrinking to approximately $29 million.
The delisting is pursuant to Nasdaq Listing Rules 5101, 5110(b), and IM-5101-1. WW International has the option to appeal the delisting decision. Nasdaq will suspend trading of the company’s stock at the opening of business on May 16, 2025, unless an appeal is requested. A Form 25-NSE will be filed with the SEC to complete the delisting process if the company does not appeal. Despite maintaining impressive gross profit margins of 69%, InvestingPro analysis shows the company’s current ratio of 0.15 indicates significant liquidity challenges, with short-term obligations exceeding liquid assets.
WW International plans to seek the listing of new common equity, anticipated to be issued under the reorganization plan, on Nasdaq or another national exchange post-emergence from the bankruptcy proceedings. Meanwhile, the company expects its stock to begin trading on the Pink Current Market operated by OTC Markets Group. This over-the-counter trading is not expected to impact business operations, but there is no guarantee that trading will continue efficiently, as broker-dealers may not provide public quotes. Recent trading data from InvestingPro shows average daily trading volume of 26.3 million shares, with the stock currently trading at just 16% of its 52-week high of $2.33.
The company’s forward-looking statements include plans and expectations regarding the Chapter 11 process and Nasdaq’s delisting. However, these statements are subject to risks and uncertainties, such as court approvals, stakeholder consent, the effects of the bankruptcy on the company’s operations and stock, and the ability to reorganize successfully. Investors are cautioned not to place undue reliance on these statements, which are based on current views and are subject to change due to various risk factors. For comprehensive analysis of WW International’s financial health and future prospects, investors can access detailed Pro Research Reports and additional financial metrics through InvestingPro.
This news is based on a press release statement from WW International, Inc. and provides a summary of the company’s current situation as it navigates through bankruptcy and delisting procedures.
In other recent news, WW International has filed for Chapter 11 bankruptcy protection, a move that has led to significant changes in its financial ratings. Moody’s downgraded the company’s corporate family rating to Ca and its probability of default rating to D-PD due to governance issues and unsustainable capital structure. S&P Global Ratings followed suit, lowering WW International’s issuer credit rating to ’D’ and its issue-level ratings on all rated debt instruments to ‘D’ as well. The company has entered into a restructuring support agreement that aims to reduce its total outstanding debt significantly. This restructuring is expected to cut the annual interest expense by half and provide a new capital structure with $465 million in new senior secured debt and 91% of new common equity.
In its first-quarter earnings report, WW International announced an adjusted earnings per share of -$0.47, missing analyst estimates, while revenue exceeded expectations at $186.6 million despite a 9.7% year-over-year decline. The company saw a decrease in total subscribers but reported growth in its Clinical subscriber base, which increased by 55.2%. Clinical subscription revenues also rose by 57.1%, helping to offset declines in other areas. WW International plans to finance its operations during the bankruptcy proceedings with its cash reserves and aims to emerge from bankruptcy within 45 days. The company has not provided full-year guidance for 2025 due to the ongoing restructuring process.
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