Global weight loss company Jenny Craig to shut its doors after four decades
- BREAKING NEWS: Australian-founded company to close
- Company founded by Jenny and Sidney Craig in 1983
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Australian-founded weight loss company Jenny Craig will close down after four decades in the business.
The company, which was founded by an Australian woman Jenny Craig, sent an email to is US-based employees announcing the news.
The email claimed the decision was made ‘due to its inability to secure additional financing’ with the company understood to be in $250million worth of debt.
It is not yet clear what this means for Jenny Craig’s operations in Australia, which has worked with celebrities such as Magda Szubanski, Married At First Sight’s Jules Robinson and Australian Idol’s Casey Donovan.
All of the company’s US and Canadian employees will lose their jobs by Friday, with many having already gone.
Worldwide, Jenny Craig has about 600 branches, with around 500 company-owned and franchised outlets in the US and Canada which employing more than 1,000 people, NBC reported.

Jenny Craig (left) and her husband Sidney Craig founded the weight loss company

Magda Szubanski (pictured) was one of the many Australian stars who worked with Jenny Craig
In a notice sent to employees on Tuesday, Jenny Craig said it is ‘winding down physical operations, likely transitioning to an e-commerce model’.
However, Bloomberg reported last week that the firm is considering filing for bankruptcy altogether, as it fails to deal with $250million of debt.
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The weight loss industry has been rocked recently by the rise of weight loss drugs such as Ozempic.
Last month, WeightWatchers bought a digital health firm that offers virtual appointments with doctors who can prescribe such drugs.
‘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,’ CEO and President of Jenny Craig Mandy Dowson told Bloomberg.

Married At First Sight’s Jules Robinson (pictured) also promoted Jenny Craig

Pop singer Casey Donovan (pictured right) worked with Australian weight loss company Jenny Craig

Spice Girls member Mel B used before and after photos (pictured) in ads for Jenny Craig
The company, which was founded in Australia in 1983 by Jenny Craig and her husband Sidney, sells a program that offers nutritionally balanced diets designed to help people lose weight.
The company expanded into the US in 1985.
Local celebrities who used and promoted Jenny Craig include Magda Szubanski, Married At First Sight contestant Jules Robinson and pop singer Casey Donovan.
Mariah Carey, the late actress Kirstie Alley, Mel B of the Spice Girls and Jason Alexander of Seinfeld are among the many international stars who have represented the company.

Australian-founded weight loss company Jenny Craig is reportedly about to close after four decades in the business