Natasha Clarke
Body

Devastating leaked email places Jenny Craig on brink of collapse

Weight loss firm Jenny Craig is reportedly closing its doors after four decades leading the industry. 

According to leaked staff communications, NBC News have shared that the company’s corporate and salaried field employees will face their final day of work on May 5, while their hourly staff will experience theirs on May 9. In the email, Jenny Craig explained that this was occurring “due to its inability to secure additional financing”. 

Employees were informed, however, that they would be receiving a “final pay cheque, including your full compensation earned through your last day of work and all accrued, unused paid time off”. 

Rumours have circled the company for some time, with Bloomberg reporting in just April 2023 that they were on the hunt for a buyer. The publication claimed that a source told them the company was “considering a bankruptcy filing” if their efforts to secure a buyer failed.

Bloomberg also shared the news that the company was in around $250,000 USD in debt (~$376,000 AUD/NZD).

Around the same time, corporate staff at the company’s California office received notice that they would be closing June 24, but that that day may actually be as soon as the next Friday. An FAQ was also released to them, alongside an explanation that they would be decreasing their physical operations to make way for their more e-commerce focussed business model. 

As a spokesperson told NBC News in the wake of the reports of potential layoffs, the company was “embarking on the next phase of our business to evolve with the changing landscape of today’s consumers. 

“Like many other companies, we’re currently transitioning from a brick-and-mortar retail business to a customer-friendly, e-commerce driven model. We will have more details to share in the coming weeks as our plans are solidified.”

Despite this assurance, even coupled with the latest communications, it remains unclear whether or not that transition will still be taking place, with employees left in a state of limbo. 

The industry supergiant currently employs over 1,000 members of staff, with approximately 500 stores - both company-owned and franchised - across just the United States and Canada, with a further 600 around the rest of the world, including Australia. 

The company was actually founded in Melbourne in 1983, by husband and wife Jenny and Sidney Craig. The American couple went on to take their venture back to the states, but not until two years later in 1985. 

And while the situation looks dire overseas, an employee did tell Bloomberg that franchise-owned locations “may remain open”, though this is yet to be confirmed.

Images: Getty

Tags:
Jenny Craig, company, collapse, weight loss, body