Galloway Capital Partners Considering Legal Action Against Weight Watchers International, Inc. (WW)

Market Cap: $24 million| WW International, Inc. provides weight management products and services in the United States, Germany, and internationally.

On April 25, 2025, Galloway Capital Partners (2.87%) opposed rumored Chapter 11 plans, arguing the company’s debt isn’t due until 2028-2029 and its strong Q4 results, growing clinical business, and large membership base suggest viability. Galloway warned that bankruptcy would severely harm shareholders and breach fiduciary duties, recommending instead a debt restructuring similar to Regis Corporation's, which led to an 8x stock increase. Galloway cited the recent stock drop (from $1.40 to $0.14) due to bankruptcy rumors and threatened to form an Equity Committee if Chapter 11 proceeds. Source

On May 22, 2025, Galloway Capital Partners stated that it is considering legal action against the company over its Chapter 11 bankruptcy plan, stating it unfairly benefits lenders (91%) by nearly wiping out existing shareholders despite WW's recent financial improvements and potential. They argue the bankruptcy is unnecessary, shareholders lack representation without an Equity Committee, and the plan benefits management and lenders at shareholders' expense. Source