Is global weight loss company Jenny Craig shutting down operations? Shocking leaked email reveals all
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For four decades, Jenny Craig has been a revolutionary force in the weight loss and nutrition industry, helping millions of clients worldwide make healthy lifestyle choices.
But now, the pioneering global brand is reportedly set to close its doors after it was unable to secure additional financing.
According to an email sent to US employees earlier this week, the company said it would close its doors, with many of its employees set to work their final day this Friday.
The email also informed staff members that they would receive their final pay, including their ‘full compensation earned through the last day of work and all accrued’ and unused paid leave.
It is believed that the company has amassed around US $250 million (AU $374,000,000) in debt and is reportedly even weighing up filing for bankruptcy.
Reports also stated that employees in one US office were notified last week that their store branch would close on June 24 or, possibly, as soon as this Friday.
The document said: ‘While we had to issue WARN Notices specifically for sites where we had more than 50 people potentially impacted, this will likely impact all employees in some manner.’
‘We do not know the exact employees/groups who will be impacted and if any employees may be retained. As a result, we would suggest that you anticipate that your employment may be impacted and begin to seek other employment,’ it continued.
All staff members also reportedly received a notice revealing that physical operations would be winding down due to the business wanting to evolve into an e-commerce model.
In the US, the WARN Act requires employers with at least 100 staff members to give workers 60 days’ notice of potential mass layoffs or worksite closures.
Founded in 1983 in Melbourne, Australia, by American husband-and-wife duo Jenny and Sidney Craig, the weight loss and nutrition business was bought by H.I.G Capital in 2019. It currently employs thousands of people in the US, with hundreds of centres across the globe, including in Australia.
Just last week, a spokesperson for the global weight loss company insisted that it was ‘business as usual’ and that the move to become an e-commerce business was a result of global trends.
‘Like many other companies, we’re currently transitioning from a brick-and-mortar retail business to a customer-friendly, e-commerce-driven model,’ the spokesperson told reporters at the time.
‘We will have more details to share in the coming weeks as our plans are solidified.’
Reports also revealed that workers were unaware of the grim situation going on behind the scenes.
For the past two weeks, the business had been running out of money while it searched for a buyer. It was reported that the company was pursuing a sale due to cash flow problems.
Two current Jenny Craig corporate workers shared that they fear the company will file for bankruptcy by the end of the week. Neither Jenny Craig nor H.I.G. Capital has commented on the issue.
Jenny Craig has attracted millions of clients worldwide with specially-designed menus to help customers with their weight loss journeys. Over the past few decades, countless Aussie celebrities were brought on board to represent the brand, including Magda Szubanski, Jules Robinson, and Casey Donovan.
Global celebrity endorsers include Mariah Carey and the late Kirstie Alley.
Amid reports of its closure, there has been widespread speculation that the company has been impacted by the increasing popularity of weight loss drugs, such as Ozempic. It is also believed that their sales were affected due to the global trend of turning towards online services and away from in-person businesses.
Still, despite the challenging situation it faces, the company was seen posting job openings online as recent as last month.
It is unclear how this closure will impact employees and customers in Australia. However, there is speculation that franchise-owned locations may continue operations in international branches. We’ll keep you updated on new information as this news develops in the coming days.
For those on a weight loss journey, have you used Jenny Craig’s services before? How has this news affected you? Feel free to share your story, questions and concerns in the comments below.
But now, the pioneering global brand is reportedly set to close its doors after it was unable to secure additional financing.
According to an email sent to US employees earlier this week, the company said it would close its doors, with many of its employees set to work their final day this Friday.
The email also informed staff members that they would receive their final pay, including their ‘full compensation earned through the last day of work and all accrued’ and unused paid leave.
It is believed that the company has amassed around US $250 million (AU $374,000,000) in debt and is reportedly even weighing up filing for bankruptcy.
Jenny Craig is set to close its doors after four decades of service. Credit: Shutterstock
Reports also stated that employees in one US office were notified last week that their store branch would close on June 24 or, possibly, as soon as this Friday.
The document said: ‘While we had to issue WARN Notices specifically for sites where we had more than 50 people potentially impacted, this will likely impact all employees in some manner.’
‘We do not know the exact employees/groups who will be impacted and if any employees may be retained. As a result, we would suggest that you anticipate that your employment may be impacted and begin to seek other employment,’ it continued.
All staff members also reportedly received a notice revealing that physical operations would be winding down due to the business wanting to evolve into an e-commerce model.
In the US, the WARN Act requires employers with at least 100 staff members to give workers 60 days’ notice of potential mass layoffs or worksite closures.
Founded in 1983 in Melbourne, Australia, by American husband-and-wife duo Jenny and Sidney Craig, the weight loss and nutrition business was bought by H.I.G Capital in 2019. It currently employs thousands of people in the US, with hundreds of centres across the globe, including in Australia.
Just last week, a spokesperson for the global weight loss company insisted that it was ‘business as usual’ and that the move to become an e-commerce business was a result of global trends.
According to reports, the weight loss company is aiming to be an e-commerce-driven model. Credit: Karolina Grabowska/Pexels
‘Like many other companies, we’re currently transitioning from a brick-and-mortar retail business to a customer-friendly, e-commerce-driven model,’ the spokesperson told reporters at the time.
‘We will have more details to share in the coming weeks as our plans are solidified.’
Reports also revealed that workers were unaware of the grim situation going on behind the scenes.
For the past two weeks, the business had been running out of money while it searched for a buyer. It was reported that the company was pursuing a sale due to cash flow problems.
Two current Jenny Craig corporate workers shared that they fear the company will file for bankruptcy by the end of the week. Neither Jenny Craig nor H.I.G. Capital has commented on the issue.
Jenny Craig has attracted millions of clients worldwide with specially-designed menus to help customers with their weight loss journeys. Over the past few decades, countless Aussie celebrities were brought on board to represent the brand, including Magda Szubanski, Jules Robinson, and Casey Donovan.
Global celebrity endorsers include Mariah Carey and the late Kirstie Alley.
Amid reports of its closure, there has been widespread speculation that the company has been impacted by the increasing popularity of weight loss drugs, such as Ozempic. It is also believed that their sales were affected due to the global trend of turning towards online services and away from in-person businesses.
Still, despite the challenging situation it faces, the company was seen posting job openings online as recent as last month.
It is unclear how this closure will impact employees and customers in Australia. However, there is speculation that franchise-owned locations may continue operations in international branches. We’ll keep you updated on new information as this news develops in the coming days.
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