Jenny Craig Weight Loss Company Will stop All Operations Permanently

Jenny Craig made the shocking announcement that it would stop its operations for good. This news sent shock waves through the weight loss business. After helping people reach their weight loss goals for decades, the company has decided to shut down for good.

Many people are thinking about the future of weight loss programs and what caused such a well-known and established brand to close so quickly and without warning. Read this post all the way through to learn more.

Jenny Craig Weight Loss Company Announces Permanent Closure

Jenny Craig will be closing its doors after four decades in the weight reduction and nutrition industry, according to internal letters to staff seen by NBC News.

In an email sent to staff late Tuesday (2 May 2023), the firm claimed it would close “due to its inability to secure additional financing.” Jenny Craig corporate and salaried field employees’ last day will be Friday, while hourly center employees’ last day is Tuesday.

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The firm maintained around 500 company-owned and franchised stores in the United States and Canada, according to H.I.G. Capital when purchased Jenny Craig for an unknown price in April 2019. It presently employs more than 1,000 people.

Last week, corporate employees at the company’s Carlsbad, California, office received a WARN Act notice that the company would be closing the office on June 24 but may close as soon as Friday. A FAQ was also emailed by Jenny Craig to staff, outlining that it will wind down physical operations to shift to an e-commerce strategy.

For the past two weeks, Jenny Craig had been running out of money as it searched for a buyer. Bloomberg Law reported last month that the company was considering a sale. Two current Jenny Craig corporate workers said they believe the firm may declare bankruptcy before the end of the week.

Neither Jenny Craig nor H.I.G. Capital, a $55 billion private equity group, have replied to demands for comment.

Jenny Craig was formed in 1983 to assist individuals in losing weight, and the brand gained a household name for its weight loss program. The program included customized dishes developed by chefs and nutritionists to assist people in losing weight.

The corporation hired celebrities to head the brand, including actors Kirstie Alley, Valerie Bertinelli, Jason Alexander, and singer-songwriter Mariah Carey. The firm has faced greater competition recently after a handful of medications that can help individuals lose weight, such as Wegovy, Rybelsus and Ozempic, joined the market promising to help customers shed pounds.

Jenny Craig Weight Loss

According to workers, the heart of Jenny Craig’s client-facing activities occurs largely at its physical locations, although customers generally have been turning more toward online offerings in recent years.

Last week after reports about the potential layoffs, a Jenny Craig spokesperson told NBC News that the company “is embarking on the next phase of our business to evolve with the changing landscape of today’s consumers. Like many other companies, we’re transitioning from a brick-and-mortar retail business to a customer-friendly, e-commerce-driven model. We will have more details to share in the coming weeks as our plans are solidified.”

There is no evidence in the most recent letter to employees that the shift to an e-commerce model would still proceed.

Jenny Craig’s staff said there was no evidence before the last two weeks that the firm was sinking. One month ago, the firm was marketing job positions on LinkedIn, and one employee said she had been granted a raise and new training just a few weeks previously.

Jenny Craig’s policy is to offer severance compensation to laid-off employees “based on job level and tenure with the company,” according to the FAQ paper sent out last week.

“However, at this time, it is highly unlikely that these will be paid,” it warned.

The firm notified employees in the termination letter that they would get a “final paycheck, including your full compensation earned through your last day of work and all accrued, unused paid time off.”

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