Weight loss empire Jenny Craig will reportedly close down its operations “due to its inability to secure additional financing”.
According to a leaked staff email seen by NBC News, the company will close down after four decades as an industry leader, with many employees set to work their final day this Friday.
It’s no secret the firm had been struggling recently, with Bloomberg reporting last month that it was searching for a buyer.
NBC News reports that staff at one California office were notified last week that their workplace would close on June 24, or possibly as soon as this Friday, in a grim sign of what was to come.
All workers also reportedly received a notice revealing physical operations would be winding down but that Jenny Craig aimed to evolve into an e-commerce model.
The company was bought by H. I. G Capital in 2019 and currently employs around 1000 people, with around 500 company-owned and franchised stores in the United States and Canada and 600 centres across the globe, including in Australia.
It is not yet known how the brand will be impacted in Australia, and an employee told Bloomberg it was possible that franchise-owned locations may remain in operation.
News.com.au contacted Jenny Craig Australia for comment.
For more latest Economy News Click Here