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Key Takeaways
- Shares of WW International, better known as WeightWatchers, rebounded slightly Thursday after losing more than 60% of their value yesterday.
- Wednesday's tumble followed a report that the company may file for bankruptcy in the coming months.
- S&P Global downgraded WW International's credit rating in February, saying a default and bankruptcy were likely within six months.
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 Journal reported Wednesday that WW International has more than $1.4billion in loans and bond due in 2028-2029.
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. The development signaled that "the company is in financial distress and it is increasingly likely it will default, which could include a bankruptcy or an out of court restructuring, over the next six months," S&P Global said.
WW International shares were up almost 2% by midday on Thursday, after falling 62% to 18cents yesterday. Since early February, when it was reported that restructuring talks had begun, they have traded below $1.
