Weight-loss company Jenny Craig will be closing its centers across the United States and moving to an “e-commerce-driven model” ahead of a planned bankruptcy filing.
The company shared the “unfortunate” news that it intends to file for bankruptcy in a
statement and said it will impact its colleagues in the United States.
“The Jenny Craig operations here in Australia and New Zealand do act independently,” the statement said. “Here in Australia and New Zealand we currently continue to operate and support our clients. As always, our priority is to continue providing the best possible service. We thank you for your continued patience and support during this time.”
A spokesperson for the firm said in a separate
statement to the San Diego Business Journal, “Like many other companies, we’re currently 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,” the statement added, without providing additional details regarding how many stores will close.
The Epoch Times has contacted a Jenny Craig spokesperson for further comment.
The California-headquartered weight-loss and weight-management company was founded in 1983 by Jenny Craig, who was then a mother struggling to lose weight after the birth of her second child, and her husband Sid Craig, according to the company’s official
website.
Jenny Craig’s Rise to Fame
Jenny Craig soon became a household name and began recruiting a string of ambassadors, including actors Kirstie Alley, Valerie Bertinelli, and singer Mariah Carey.
It was later
acquired by H.I.G. Capital, a private equity firm, in 2019 for an undisclosed amount.
In December last year, the company
announced its former president and chief operating officer, Mandy Dowson, was being promoted to chief executive officer and that Dowson had “several innovations in the pipeline over the next few months,” including “new product innovations” and “program enhancements” that would build on its strategy for 2023
The company operated around
500 company-owned and franchised stores in the United States and Canada, and approximately 600 centers worldwide as of December 2022.
It currently employs more than 1,000 people, NBC News
reports.According to its website, Jenny Craig offers personalized coaching and support to its customers with nutrition, fitness, and lifestyle planning that requires them to purchase a full menu at around $200 a week on average.
Weight-Loss Drugs Gain Popularity
However, with inflation soaring, Americans have been forced to cut back on spending as the cost of everything from food to gasoline has risen.In addition, traditional weight-loss companies have faced growing competition from a handful of prescription diabetes and weight-loss drugs such as Ozempic and Wegovy, which have soared in popularity in recent months, with Twitter CEO Elon Musk in October
crediting his recent weight loss to the latter.
Such drugs have been
approved by the Food and Drug Administration for chronic weight management in adults with obesity and conditions such as high blood pressure and diabetes. The drugs also come with a long list of potential side effects such as gastroenteritis (an intestinal infection) and gastroesophageal reflux disease, among others.
However, experts have warned that medications such as Ozempic are being missed as they gain popularity, prompting mass shortages that put patients who rely on them to control their blood sugar levels at risk.
“We’re getting messages daily about patients not being able to get their own medication,” Dr. Disha Narang, endocrinologist and director of obesity medicine at Northwestern Medicine, Lake Forest Hospital,
told CNN in March. “It’s been tough for patients and providers alike.”
