Jenny Craig, the California-based weight loss company known for its celebrity endorsements, is facing bankruptcy as it transitions to an e-commerce model. Reports reveal that the company closed its corporate office in Carlsbad, California and issued notice to its employees. The company, which has been losing money for the past two weeks, has been searching for a buyer, but there is no indication that any will be found.
Founded in 1983, Jenny Craig had become a household name for its weight loss program and had recruited celebrities to front the brand. With over 500 company-owned and franchised stores across the US and Canada, the weight loss industry has transformed from physical locations to e-commerce models. Currently, Jenny Craig is running out of money, and employees have received Worker Adjustment and Retraining Notification Act (WARN) notices, which explain that the company will wind down physical operations and transition to an e-commerce model.
However, the company is not the only one facing challenges in the weight-loss industry. With a handful of drugs that help people lose weight hitting the market, more consumers are pivoting towards online services. WW, the weight management company formerly known as Weight Watchers, acquired the platform Sequence last month, which introduced telemedicine appointments with doctors who can prescribe Ozempic and Wegovy.
Despite the competition for weight loss medications, lifestyle medicine expert Dr Charlie Seltzer warns that these drugs must be part of a comprehensive weight loss approach and only work as long as they are used. Therefore, e-commerce models in the weight-loss industry still have a place for offering programs that offer nutritionally balanced diets designed to help people lose weight. However, Jenny Craig is running out of time to secure financing and a potential buyer.
