WW International, formerly known as WeightWatchers, has filed for Chapter 11 bankruptcy protection on Tuesday in a bid to cut its debt after Ozempic and other hugely popular obesity drugs upended its business model. Shares of the company, which once boasted of media mogul Oprah Winfrey as one of its top shareholders, slumped 40% in extended trading after announcing plans to file for bankruptcy as part of a reorganization plan with a group of its lenders. WeightWatchers began as weekly weight-loss support group meeting with 400 attendees, and quickly turned into a worldwide phenomena with millions of members across the globe. But the rising popularity of GLP-1 drugs such as Novo Nordisk’s Wegovy and Eli Lilly’s Zepbound hit demand for its traditional weight-loss programs. It also acquired a telehealth provider to provide weight-loss drugs in 2023, but reported a loss of $345.7 million last year, while its subscription revenues fell 5.6% year-over-year. WW said the reorganization plan will eliminate $1.15 billion in debt from the company’s balance sheet. The company has accumulated substantial debt of around $1.6 billion. The company has estimated assets and liabilities in the range of $1 billion to $10 billion, according to the Chapter 11 petition filed in Delaware bankruptcy court. After its rebranding to WW International in 2018, the company aimed to focus on overall wellness rather than just weight loss. The company’s shares have slumped 60% since the Wall Street Journal first reported in April that the company was preparing to file for bankruptcy in the coming months.