Jenny Craig, the weight loss and nutrition business backed by H.I.G. Capital, will shut down after four decades of operation after failing to secure additional financing, NBC reported.
(Bloomberg) — Jenny Craig, the weight loss and nutrition business backed by H.I.G. Capital, will shut down after four decades of operation after failing to secure additional financing, NBC reported.
The company told employees in an email late Tuesday that corporate and salaried field employees’ last day will be Friday, while hourly center employees’ last working day was May 2, according to the report. Employees will receive a final paycheck, including full compensation through their last working day as well as unused paid time off. Â
The decision comes after efforts by Jenny Craig to find a buyer as it struggles to contend with increased competition from the prevalence of weight loss drugs. Bloomberg News previously reported that the company was mulling filing for bankruptcy if it was unable to secure a buyer.
Jenny Craig has nearly 500 company-owned and franchised locations across the US and Canada, and roughly 600 centers worldwide. It employs more than 1,000 people, according to NBC.
Jenny Craig did not respond to Bloomberg News for comment.
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