Jenny Craig, a weight loss company that has been in business for over 40 years, is abruptly closing all of its stores in the United States and Canada. The company announced the closure on May 2nd, 2023, and said that it would be laying off all of its workforce.
The closure comes as a surprise to many, as Jenny Craig was once one of the most popular weight loss programs in the world. The company had over 1,200 stores in the United States and Canada, and served over 2 million customers per year.
The increasing popularity of online weight loss programs may have contributed to Jenny Craig’s closure. There are now a number of online programs that offer personalized meal plans and support, and they can be much cheaper than traditional weight loss programs like Jenny Craig.
Another factor is the changing demographics of the United States. As the population is becoming more and more overweight, people are also becoming more health-conscious and more likely to try to lose weight on their own, rather than through a weight loss program.
What we have learned:
- The company said that it was closing its stores due to its inability to secure additional financing.
- Jenny Craig had been struggling financially for some time. In 2022, the company reported a net loss of $100 million. Bloomberg reported a week ago that the company was $250 million in debt.
- The company recently reported that it would be transitioning to an ecommerce model but has not given any further details.
- The company’s closure will affect over 1,000 employees.
- Jenny Craig is not the only weight loss company that has closed its stores in recent years. Nutrisystem and Weight Watchers have closed many locations and are working on alternate business models, such as telehealth and/or prescription weight loss drugs.
The closure of Jenny Craig is a sign of the changing landscape of the weight loss industry, as more people turn to online programs and other weight loss methods. Over the years, the Jenny Craig system was criticized for being both unsustainable from a health standpoint (1,200 calories per day) and expensive (between $100 and $200/week). New drugs, like Ozempic, which regulates blood glucose levels and slows down food digestion, thus helping with weight loss, have become very popular and providing competition for diet systems.
There is no clear information at this time as to whether Jenny Craig will find new investment, be purchased, or move on to a different business model.