Jenny Craig closes doors after 4 decades; warns employees of mass layoffs by end of the week
According to internal business communications, weight loss company Jenny Craig will be closing its doors after four decades.
Emails sent to employees Tuesday evening announced that the company is closing “due to its inability to secure additional financing,” reports NBC News.
Friday will mark the last day for Jenny Craig corporate and salaried field employees, while hourly center employees will continue until Tuesday, staff was informed.
As of 2019, when Jenny Craig was acquired by the $55-billion private equity firm H.I.G. Capital, the company owned and operated 500 stores across the U.S. and Canada. Now, over 1,000 employees are set to lose their jobs.
Last week, an alert was sent to Jenny Craig staff, explaining that corporate would soon wind down physical operations and transition to an e-commerce model. It also warned of impending layoffs, which have now been confirmed.
Bloomberg reported last month that the company was actively pursuing a sale to try to help its financial position, but current employees fear a bankruptcy filing could come before the end of the week.
Jenny Craig was founded back in 1983 to help people lose weight, growing into a household name by providing curated menus designed by chefs and nutritionists to help consumers sustainably diet.
The company also recruited celebrities to bolster its look. Kirstie Alley, Valerie Bertinelli and Jason Alexander, along with singer-songwriter Mariah Carey, have all served as faces of the brand.
After reports of potential layoffs came last week, 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 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,” they added.
