WW International (NASDAQ: WW ) Inc., known as WeightWatchers, is negotiating with its lenders to exchange a portion of its almost $1.5 billion debt for equity, Bloomberg News reported. This move could lead to creditors gaining control of the company, which has been grappling with a decline in revenue and heightened competition from newer weight-loss drugs.

The diet and wellness company, once a dominant player in the industry, has been exploring options to manage its substantial debt as it faces financial challenges. The ongoing discussions have not yet resulted in a definitive agreement, and the parties involved have requested anonymity due to the sensitivity of the negotiations.

WeightWatchers is collaborating with PJT Partners Inc (NYSE: PJT ). for financial guidance, while a group of its creditors has sought the expertise of Houlihan Lokey Inc (NYSE: HLI ). and law firm Gibson Dunn & Crutcher to represent their interests in the matter.

The company’s CEO, Tara Comonte, acknowledged the financial strain during a February earnings call, citing approximately $100 million in annual interest payments as a "significant ongoing burden for the company." These financial pressures underscore the urgency for WeightWatchers to find a sustainable path forward amid a challenging market landscape.

Shares of WW are down 57% year-to-date on concerns about its finances.

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