WW International (WW.O), better known as WeightWatchers, is preparing to file for bankruptcy in the coming months as part of a plan to hand over control of the company to its creditors, according to a report from The Wall Street Journal on Wednesday, citing people familiar with the matter.

Shares of the company plunged nearly 59% in afternoon trading, falling to just 18 cents.

The weight management firm has struggled to remain relevant as demand has surged for new, highly effective weight-loss drugs like Novo Nordisk’s Wegovy, which offer a faster path to addressing obesity—a growing global health issue.

In an effort to adapt, WeightWatchers acquired subscription-based telehealth platform Sequence in 2023, aiming to enter the market for obesity drug prescriptions. The company, long known for its nutrition and behavior-change programs, has since faced mounting challenges.

Once trading as high as $100 in 2018, WeightWatchers' stock lost most of its value last year amid declining revenues, concerns over liquidity, and the high-profile departure of celebrity board member Oprah Winfrey.

According to the WSJ report, the company is currently in restructuring talks with its lenders and bondholders. The report noted that these negotiations are unrelated to the broader market selloff or the Trump administration’s newly announced tariffs.