Jenny Craig, whose weight-loss centers have helped millions of Americans shed pounds amid a culture of obesity and fast food, announced it will close its doors after four decades in business.
In an email sent to employees late Tuesday, the Carlsbad-based company attributed the closures to its “inability to secure additional financing.”
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When Jenny Craig was acquired by H.I.G. Capital for an undisclosed amount in April 2019, it operated 500 company-owned and franchise stores in the U.S. and Canada and roughly 600 worldwide.
Company-owned centers where members pick up meals, consult with coaches and weigh in were closed as of Wednesday, May 3, management said, adding that franchise-owned locations may remain open.
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Hourly center employees’ last working day was Tuesday. Workers will receive a final paycheck, including full compensation through their last working day as well as unused paid time off, NBC said.
Jenny Craig employs more than 1,000 workers and corporate and salaried field employees.
“Like many other companies, we’re currently transitioning from a brick-and-mortar retail business to a customer-friendly, e-commerce driven model,” CEO and President Mandy Dowson told Bloomberg last month. “We will have more details to share in the coming weeks as our plans are solidified.”
Locally, Jenny Craig weight-loss centers can be found in Valencia, Granada Hills, Studio City, Woodland Hills, Burbank, Pasadena, Palmdale, San Dimas, Brea, Torrance, Long Beach, Irvine, Anaheim, Riverside and Aliso Viejo.
Bloomberg Law reported last month that Jenny Craig Inc. was looking for a buyer as it grappled with cash-flow pressures. The H.I.G. Capital-backed business was reportedly having active discussions with lenders to rework an estimated $250 million in debt, according to people who asked not to be…
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