Jenny Craig – a company that has offered weight loss programs since 1983 – told multiple news outlets this week that it plans to begin closing its physical locations.
“Like many other companies, we’re currently transitioning from a brick-and-mortar retail business to a customer-friendly, e-commerce driven model,” a spokesperson for Jenny Craig said in a statement to CNN. “We will have more details to share in the coming weeks as our plans are solidified.”
Last Friday, NBC News reported about layoff warnings at Jenny Craig.
According to the outlet, Jenny Craig told employees to prepare for potential mass layoffs as it begins “winding down physical operations,” and the company is looking for a buyer. A “Jenny Craig Company Transition FAQs” document provided to the outlet said that the company “has been going through a sales process for the last couple of months.”
“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,” said the document. The WARN Act outlines requirements for alerting employees of layoffs.
Per NBC News, Jenny Craig said “we do not know the exact employees/groups whom will be impacted, and if any employees may be retained,” it added that employees should begin to seek other employment.
Bloomberg Law reported in March that Jenny Craig was seeking potential buyers. Bloomberg also reported last week that the company – which was acquired by H.I.G. Capital in April 2019 – was considering filing for bankruptcy as early as this week. When H.I.G. acquired Jenny Craig, it operated around 500 company-owned and franchised stores in the U.S. and Canada.
In February 2020, shortly before the COVID-19 pandemic was declared, Jenny Craig announced plans to open “more than 100 centers inside select Walgreens coast-to-coast,” where customers could meet with coaches.
Now, dozens of LinkedIn users across the U.S. who list Jenny Craig as their current employer are listed as “Open to Work,” according to NBC News.
“A current Jenny Craig employee, who spoke anonymously because he wasn’t authorized to discuss internal operations, said the location where he works has been directed to stop taking new clients,” said the outlet.
Although Jenny Craig policy calls for employees to be provided severance “based on job level and tenure with the company,” according to the FAQ document, it also said that “at this time, it is highly unlikely that these will be paid,” according to NBC.
According to CNN, Jenny Craig’s business may be impacted by “major changes in the weight-loss industry, brought on by popular new prescription diabetes drugs such as Wegovy, Ozempic, and Rybelsus,” as well as Muonjaro. Last month, Audacy reported on plans to get U.S. Food and Drug Administration approval for tirzepatide, the main ingredient in its Mounjaro prescription medicine as a weight-loss drug.
This drug has been “shown to decrease food intake and modulate fat utilization,” said Eli Lilly, Muonjaro’s manufacturer.
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