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Weight loss company Jenny Craig shutting down after 40 years: Reports

The weight loss company has about 500 locations in the U.S. and Canada and employs more than 3,000 people.

WASHINGTON — Weight loss company Jenny Craig will close up shop at the end of this week, according to several media reports based on internal emails sent to employees. 

NBC News cited an email sent to employees late Tuesday saying the company will close "due to its inability to secure additional funding." 

While corporate and salaried field employees have until the end of the week, hourly employees at the company's branch locations around the country were told on Tuesday that they would not return to the office on Wednesday. 

The company owns about 500 stores in the U.S. and Canada and employs more than 3,000 people. It has yet to publicly address the reports that it's closure is imminent. 

Jenny Craig was bought in 2019 by investment group H.I.G. Capital for an undisclosed sum. 

According to ABC News, some employees were told over the past week that several corporate buildings would be closed via WARN Act letters. Those letters are federally mandated announcements that companies must give employees before plant closings or mass layoffs. 

In the letters, Jenny Craig told employees that its Carlsbad, California corporate office and the "bulk of operations" would shut down around June 24, but warned that if they couldn't secure financing to continue operations until that date that they may close up shop as early as May 5. 

It appears that worst-case scenario came true, with the company running out of money without finding a buyer. Bloomberg Law reported last month that the company had been pursuing a sale for months, but had received little interest.

The company was founded in 1983 to promote weight loss, and quickly became a household name in the health market. Jenny Craig's program centers around preparing meals that are designed to help those eating them lose weight. 

But the rise in competition from weight-loss drugs such as Wegovy and Ozempic has severely cut into the market for such meal plans. NBC News reports that the company's business model was behind the times as well, according to employees. 

Credit: Shea Walsh /AP Images for Jenny Craig
A food platter is seen at Jenny Craig's New Year's weight loss resolution "check-in" at the SLS Hotel Beverly Hills on Feb. 3, 2010, in Beverly Hills.

At a time when consumers are pivoting more toward online services, the core of Jenny Craig's program happens at its physical centers. 

The company reportedly told employees in the termination email that they will receive a "final paycheck, including your full compensation earned through your last day of work and all accrued, unused paid time off."

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