Popular weight loss and nutrition business Jenny Craig is closing operations in the United States after 40 years, local media reports.
In an email sent to employees on Tuesday (Wednesday AEDT), the company said it will close “due to its inability to secure additional financing,” reports NBC.
The company has about 1000 casual and corporate workers in the US.
Jenny Craig has been searching for a buyer as it ran out of money, Bloomberg Law reported last month.
Two current Jenny Craig corporate employees said they were concerned the company will file for bankruptcy by the end of this week.
Founded in 1983, Jenny Craig’s weight loss programs designed by chefs and nutritionists grew to become a successful global brand, including in Australia, where former Spice Girls star Mel B was a brand ambassador.
Celebrities, including actors Kirstie Alley, Jason Alexander and singer-songwriter Mariah Carey, were recruited to promote the company.
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But Jenny Craig – which operates largely on face-to-face customer interactions – has been impacted by a growth in online competitors and the popularity of weight-loss drugs such as Wegovy, Rybelsus and Ozempic.
Last week amid reports about potential job cuts, a Jenny Craig spokesperson said that the company was “currently transitioning from a brick-and-mortar retail business to a customer-friendly, e-commerce driven model.”
The spokesperson said they would provide more details in coming weeks.
Jenny Craig in Australia has been contacted by 9News.com.au for comment.
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