Weight loss giant Jenny Craig will continue its operations in Australia and New Zealand, despite announcing plans to shut down its corporate offices in the US.
In an email to its more than 1000 employees on Tuesday night, the weight loss and nutrition company revealed it will close its California headquarters and transition to an e-commerce model following reports it failed to secure additional financing.
A representative said the decision would not affect operations in Australia and New Zealand.
“You may have heard the news that Jenny Craig USA are intending to file for bankruptcy,” a company statement on Thursday read.
“While this is unfortunate news for our colleagues in the USA, the Jenny Craig operations here in Australia and New Zealand do act independently.
“Here in Australia and New Zealand we currently continue to operate and support our clients. As always, our priority is to continue providing the best possible service. We thank you for your continued patience and support during this time.”
The company was founded in Melbourne in 1983 and grew to become a household name as one of the biggest weight management companies in the world.
Its diet and nutrition programs were once endorsed around the world by celebrities such as former Spice Girls star Mel B, actors Kirstie Alley, Jason Alexander and singer-songwriter Mariah Carey.
But, after facing financial difficulties brought on by the COVID-19 pandemic, Jenny Craig has reportedly also struggled against increasing competition in recent years, including a surge in weight loss drugs.
Bloomberg Law reported last month that Jenny Craig had been searching for a buyer as it ran out of money.
In the US, two of the company’s corporate employees said they were concerned Jenny Craig would file for bankruptcy by the end of this week.
The company has more than 500 locations in North America and about 600 centres globally.
-with AAP
