Diet giant Jenny Craig is reportedly shutting down its weight-loss centres and has warned its staff about mass layoffs.
Reports from multiple outlets indicate that the California-based company, which operates nearly 500 storefronts in Canada and the U.S., will begin letting go staff as it hunts for a buyer.
In an email sent to employees Tuesday, and obtained by NBC, the company said it will close “due to its inability to secure additional financing.” The memo said corporate and salaried field employees’ final day will be Friday, and hourly employees will be out of a job next week.
The memo, titled “Jenny Craig Company Transition FAQs,” informed workers that it would be “winding down physical operations” and “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,” the document stated, according to the outlet.
“We do not know the exact employees/groups whom will be impacted, and if any employees may be retained,” it continued. “As a result, we would suggest that you anticipate that your employment may be impacted and begin to seek other employment.”
Bloomberg reported last week that the company is currently facing about US$250 million of debt and is considering filing for bankruptcy if it cannot find a buyer for its assets.
“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,” a spokesperson for Jenny Craig said in a statement.
The first Jenny Craig weight-loss centre opened in 1983. It went on to become one of the leading weight loss brands across North America, offering meal plans, food delivery and coaching.
The company was known for its high-profile celebrity spokespeople, including Jessica Simpson, Mariah Carey, Valerie Bertinelli and Jason Alexander.
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