Weight Watchers CEO calling it quits after tumultuous year

Sep 15, 2016, 07:00
Weight Watchers CEO calling it quits after tumultuous year

Weight loss company Weight Watchers International Inc. has reportedly seen $1.2 billion in value disappear over the last 11 months - leaving major shareholder and media mogul Oprah Winfrey with a staggering $117 million personal loss over the same time frame.

Shares were down another 68 cents, or 6.6%, to $9.68 Tuesday after the company said it is replacing its CEO of three years James Chambers at the end of the month. Weight Watchers already had dropped 55 percent this year through the close of regular trading on Monday.

Oprah Winfrey's halo effect on Weight Watchers is disappearing fast.

As part of the changes announced Monday, Semmelbauer also has been elected to Weight Watchers' board.

Weight Watchers' biggest investor is European investment group Artal Luxembourg SA, which acquired the company from H.J. Heinz Co.in 1999 and held a 46% stake as of March.

Weight Watchers stock prices doubled past year when Winfrey became the company's third-largest investor.

Meanwhile, the board has established a committee that includes Winfrey to search for a permanent CEO. In May, she said she didn't think she would ever go off the plan. Initially membership increased but then financially it has struggled as its competed against free smartphone apps and gadgets to help track calories, and rival Nutrisystem. Weight Watchers collapsed with nearly 70 per cent since their apogee from November.

"We remain confident we will deliver revenue and earnings growth in 2016, and that Q3 will be our fourth consecutive quarter of year-over-year member recruitment growth".

While Weight Watchers is looking for Chambers' replacement, CFO Nicholas Hotchkin and board members Thilo Semmelbauer and Christopher Sobecki will take over temporarily, Market Watch reports.

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