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After 40 years in business, weight loss chain Jenny Craig has announced it is closing in the US, Canada, and possibly some other markets around the world.
Reports of the chain’s downfall first emerged last week, as the chain scrambled to find cash to cover debt payments, and warned staff of impending major layoffs.
The business — which offers ready-made meals and coaching lessons to millions of people trying to lose weight — has about 500 franchises in the U.S. and Canada, and more around the world.
It was founded by American entrepreneur Jenny Craig in the 1970s but changed hands several times over the years.
The most recent sale was in 2019, when it was purchased by private equity firm HIG Capital for an undisclosed amount.
WATCH | Jenny Craig goes bankrupt:
The weight loss chain Jenny Craig confirmed what has been rumored for days: it declared bankruptcy and closed its operations in Canada and US Market observers say that stiff competition from free weight loss apps and new drugs like Ozempic has taken away business from companies like Jenny Craig .
The chain’s efforts to fix the business have been fruitless as the chain filed documents with bankruptcy courts in the US and Canada in recent days.
“Thank you to Jenny’s family for their loyalty,” he said on the company’s website. “It is with heavy hearts that we announce the closing of our business.”
The move means that effective immediately, all chain activity has stopped. Any food scheduled to be delivered has been cancelled, as well as all orders for training sessions and merchandise sales.
Canadian court filings suggest the chain owes more than $323 million to various unsecured creditors in Canada.
In addition to its core market in North America, the chain also has a large presence in Australia and New Zealand, where as recently as last week, the chain told customers there that “local operations are not affected by the recent news about Jenny Craig. The US center is closed. “
On Tuesday, local media reports indicated that the company had appointed “voluntary administrators” in the two markets, a form of corporate restructuring designed to save viable businesses, but which often end in business closures.
More to come.
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