With $117 Million Gone Out The Door, Oprah Winfrey Helps Weight Watchers Find A New CEO
|With $117 Million Gone Out The Door, Oprah |
Winfrey Helps Weight Watchers Find A New CEO
Shares of Weight Watchers are down another 76 cents, or 7%, to $9.61 Tuesday after the company said it is replacing its CEO.
Oprah Winfrey will help Weight Watchers pick a new leader, the diet company said on Monday, about a year after the media mogul announced she had bought a 10 percent stake in the company.
Weight Watchers said its chief executive, James Chambers, would resign at the end of September after three years on the job.
He and the board of directors, which includes Winfrey, made a "joint decision" that he should leave, according to the company.
As of Monday's close, the company's stock price was down 55 percent for the year at $10.36. Shares fell as much as 9 percent in after-hours trading, following the announcement of Chambers' resignation.
Weight Watchers said no one from inside the company, including Winfrey, was considered a candidate to replace Chambers. The former talk show queen, along with members of a search committee, will be "actively involved" in finding his replacement, the company said.
|chief executive James Chambers|
Morningstar analyst R.J. Hottovy said in a note last month that "it will take more time and other technology, product development, and potential rebranding investments to make Weight Watchers' platform stand out from emergent rivals."
The third quarter of 2016 will be the company's fourth consecutive quarter of year-over-year member recruitment growth, Chief Financial Officer Nicholas Hotchkin said in a statement.
Hotchkin and directors Thilo Semmelbauer and Christopher Sobecki will temporarily lead Weight Watchers until a replacement for Chambers is hired, according to the company.