Jenny Craig Reportedly Planning To Close Its Doors And Lay Off Staff After Acquisition Plans Fall Flat

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Nationwide weight loss and nutrition giant Jenny Craig will reportedly shut its doors after four decades:

, company executives told salaried employees their last day at the company will be Friday, and that hourly employees worked their final shifts on Tuesday .

Company officials said the decision to shut down comes as the weight loss chain struggles to “secure additional financing”—officials hadwarned employees last week of plans to wind down “physical operations,” close its Carlsbad, California, headquarters and transition to an “e-commerce model” as it searched for a buyer.

Shares of HIG Capital, the private-equity firm that acquired Jenny Craig in April 2019, dropped 1.05% Wednesday morning, to $69.77, and are down more than 7% on the year. The NBC News report comes amid a surge in weight loss drugs, including diabetes drugs Wegovy, Rybelsus and Novo Nordisk’s —a drug nicknamed Hollywood’s “worst kept secret” that that has become so popular it coincided with a nationwide shortage, even though its primary use is to lower blood sugar among people with type-two diabetes.of its diabetes drug tirzepatide , for weight loss purposes after an auspicious clinical trial that indicates Mounjaro could be more successful in helping people lose weight than other drugs on the market, including Ozempic.1,732.

 

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Weight loss company Jenny Craig to shut down corporate officesIn documents obtained by ABC News, Jenny Craig told employees it is 'in the process of winding down physical operations, likely transitioning to an e-commerce model.'
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