This morning, while flicking through the business news over my coffee, one headline jumped out: WeightWatchers has filed for bankruptcy in the US.

At first glance, it might just seem like a diet brand falling out of fashion. But if you run a business, there are some real lessons buried in this story. And the warning signs aren’t just for global companies — they apply to small and medium businesses here in the UK too.

So, what happened? And what can we learn from it?

Let’s unpack the story and break it down in a way that’s easy to follow.

What’s the story?

Weight Watchers has been around for decades. It built its reputation by helping people lose weight through food tracking, in-person meetings, and community support.

But recently, it filed for something called Chapter 11 bankruptcy in the US. That doesn’t mean the company is shutting down completely, but it does mean it’s in serious financial trouble and is trying to reorganise to stay alive.

And here’s the thing: this didn’t come out of nowhere.

Over the last couple of years, weight-loss drugs like Ozempic and Wegovy have exploded in popularity. These medications have changed the way people think about dieting. And as more people turned to those, fewer were interested in tracking points and going to meetings. As a result, WeightWatchers lost members — and revenue — fast.

They tried to catch up by buying a telehealth business and offering prescriptions for these new drugs, but it was too late. On top of that, they were already drowning in debt.

That’s the short version. Now let’s get into what this means for you as a business owner.

What is Chapter 11, anyway?

Let’s quickly explain this. In the US, Chapter 11 bankruptcy allows a company to keep operating while it works out a plan to repay its debts. It’s not the same as closing up shop — but it is serious. It’s like a financial emergency room. The company gets a chance to breathe and reorganise, but it has to prove that it can make a comeback. Not every business gets that far.

For business owners here in the UK, it’s similar in concept to entering administration — but with a bit more flexibility.

Lesson 1: Markets change — often faster than we expect

The world doesn’t stand still. New products, technologies, and services pop up all the time. And sometimes, they completely shake up an industry overnight.

For years, WeightWatchers had a firm grip on the weight-loss market. But they didn’t move quickly enough when the ground started shifting under their feet. New solutions came in, and suddenly, the way people wanted to lose weight changed.

Ask yourself: What’s changing in your sector? What’s on the horizon that could disrupt your way of doing things?

Lesson 2: Being adaptable isn’t a “nice-to-have” — it’s essential

When the market changes, you need to be able to change with it. That might mean introducing a new service, changing how you deliver your product, or even switching up your entire business model.

WeightWatchers eventually tried to pivot. They saw the rise in demand for weight-loss drugs and bought a company that could help them join in. But by then, they’d already lost a lot of ground. Competitors were ahead, and customers had moved on.

The key takeaway? You can’t afford to sit back and wait when change is happening. Businesses that adapt quickly are the ones that survive.

Lesson 3: Debt can be useful — but it can also strangle your business

Debt isn’t always a bad thing. In fact, borrowing can be a smart way to grow. But it needs to be managed properly.

WeightWatchers had more than $1.6 billion in debt. That meant paying around $100 million a year just in interest. So when their income dropped, they didn’t have much room to move. That debt didn’t just slow them down — it pulled them under.

If your business is using loans or credit, that’s not automatically a problem. But it’s vital to ask: Is the debt working for you? Can you manage it if sales take a dip?

Having too much debt is like trying to run with a weight on your back. You can do it — for a while. But when the wind changes, it’ll slow you down more than anything else.

Lesson 4: Customers won’t stick around just because they always have

One of the scariest things for a business is this: even long-term, loyal customers will leave if they find a better option.

That’s what happened to WeightWatchers. People who’d been using them for years suddenly saw a faster, easier alternative in Ozempic. And they jumped ship.

It doesn’t matter how long you’ve been around, how strong your brand is, or how many years you’ve served your customers. If your offering doesn’t stay relevant, people will look elsewhere.

Ask yourself: Are you still solving your customers’ problems in the best way? Are you listening to what they need — not just what they needed last year?

Lesson 5: Innovation isn’t just for big companies

Some small businesses hear the word “innovation” and think, “That’s for tech startups or Silicon Valley types — not for me.”

But innovation doesn’t have to mean inventing something new. It can mean doing what you already do in a smarter, faster, or more efficient way. Or using new tools to help customers get better results.

WeightWatchers stuck with the same core programme for years. That was fine — until it wasn’t. When customers found a more modern option, they left.

If you want your business to keep going strong, you need to keep finding ways to do things better.

Lesson 6: Watch out for the competition you don’t see coming

Weight Watchers didn’t get knocked off its perch by another diet company. They were disrupted by a completely different industry: pharmaceuticals.

That’s a great reminder that your biggest competition might not be someone offering the same service. It could be a new way of solving the same problem.

A printing company might not lose customers to another printer — they might lose them to digital alternatives. A local taxi firm might lose out to ride-sharing apps. A gym could lose members to home fitness platforms.

Ask yourself: Who else is solving the same problem you are — but in a different way?

Lesson 7: Don’t be afraid to face the facts

One of the hardest parts of running a business is admitting when things aren’t going well. It’s easier to ignore the signs, hope things will turn around, or tell yourself it’s just a slow month.

But being honest — really honest — about your situation is how you stay in control.

WeightWatchers waited too long to make bold changes. And by the time they did, the damage had already been done.

If you see customer numbers dropping, or profits shrinking, or your team getting stretched too thin — it’s time to act. Don’t wait until it’s a crisis.

What does this mean for your business?

Even if you’re not in the health and wellness industry, these lessons apply. Markets change. Customers change. The tools and technology we use all change.

The question is — will your business change with them?

This doesn’t mean you have to overhaul everything tomorrow. But it does mean regularly checking in with yourself and your business.

How to stay ahead in practice

So, how do you make sure you’re not caught off guard?

Start by setting a simple routine. Every quarter, block out an hour and ask yourself three things:

What’s changing in my market?

What’s no longer working in my business?

If I started this business today, what would I do differently?

That little bit of reflection could be the difference between growth and getting left behind.

Let’s talk — before things get difficult

If any of this has struck a nerve — you’re not alone. Many business owners are so busy with day-to-day work that they don’t stop to look at the bigger picture. That’s what we’re here for.

At BM & Co Accountants, we help business owners do more than just keep the books in order. We help you understand what’s really going on behind the numbers.

Whether it’s reviewing your debt, helping you plan for future trends, or simply giving you space to talk through your ideas, we’re here for you.

We offer everything from half-hour sanity check calls to full strategy reviews. Whatever stage you’re at, we’ll help you build a business that can flex with the market — not get flattened by it.

Final thought

Weight Watchers’ story isn’t about failure — it’s about what happens when businesses stop evolving.

If anything, it’s a powerful reminder that none of us can afford to stand still.

Stay curious. Stay honest. And be ready to grow.

Want to chat about how your business is doing? Let’s grab a virtual coffee and take a look together.