Weight loss empire Jenny Craig will continue its operations in Australia, after reports the company plans to file for bankruptcy and will close the business in the United States.
US media outlets have reported Jenny Craig intends to file for bankruptcy and will close its operations, according to an email sent to US employees on Tuesday, local time.
The internal email said the company will close "due to its inability to secure additional financing," according to US news outlet NBC.
Jenny Craig's operations in the US employ more than 1,000 casual and corporate workers.
NBC reports that internal communications from the company say corporate and salaried employees will finish working on Friday, local time, while casual workers finished on Tuesday.
The weight loss company, which was purchased by HIG Capital in 2019 for an undisclosed amount, has been searching for a buyer for the past fortnight to no avail.
Bloomberg Law reported last month that the company was looking to sell as it grappled with "cash flow pressures".
A spokeswoman for Jenny Craig has confirmed the collapse of the company in the US will not affect its operations in Australia.
She said the company's operations in Australia are independent of the US, and will continue.
"Here in Australia and New Zealand we currently continue to operate and support our clients," she said.
"As always, our priority is to continue providing the best possible service."
Jenny Craig was founded in Melbourne in 1983 by American couple Jenny and Sidney Craig to help people lose weight, before it expanded to the US in 1985.
It operates more than 700 "weight management" centres globally, with more than 80 located in Australia.
The company's website said it "has helped millions of people unlock the best version of themselves" with its "proven weight loss plan".
It said the brand's "holistic approach" teaches customers how to lose weight and keep it off.
Jenny Craig offers dietitian-approved pre-prepared meals and snacks, activity plans, weight loss and weight management coaching.
The diet brand has also recruited a number of high profile ambassadors since its inception, including Magda Szubanski, Mariah Carey, Casey Donovan, Jason Alexander, Jelena Dokic and the late Kirstie Alley.
