“Board members, including Oprah Winfrey and myself, will be actively involved in the search for a new CEO, and look forward to working with her or him in shaping the future of Weight Watchers”, Weight Watchers Chairman Ray Debbane said in a statement. When Winfrey first announced her investment, shares soared more than 90% and created $70 million in paper gains in one day.
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Weight Watchers’ board, which includes media star and major shareholder Oprah Winfrey, has established a search committee to find a permanent replacement.
Weight Watchers CEO James Chambers announced Monday that he was stepping down.
Weight Watchers is in need of a new CEO, and it’s turning to Oprah Winfrey for help. “All told, the value of Weight Watchers soared $1.4 billion in the months following Winfrey’s involvement”. Weight Watchers’ stock rallied past year when the media magnate agreed to invest in the company and act as a spokeswoman, but its most recent sales missed analysts’ estimates.
Shares fell as much as 8% in after-hours training on the news, which comes at an uncertain time for the brand. The interim office of the CEO will consist of finance chief Nicholas Hotchkin, board member Christopher Sobecki, and former Chief Operating Officer Thilo Semmelbauer.
Shares of Weight Watchers International Inc. skidded in Monday’s extended session after the company said Chief Executive James Chambers has resigned, effective September 30, and the company has begun its search for a successor. People are now following weight-loss gurus on YouTube, as well as using free mobile apps to track their eating habits for free. Investors now value the company at a little more than $600 million. A shift has also occurred in what US consumers consider to be healthy.
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New North American subscribers, a key measure for the company, grew 9 percent in the second quarter.
