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One of the most instantly recognisable weight loss companies on the planet is going out of business, according to a devastating leaked email.
Actor Magda Szubanski was Jenny Craig’s popular spokeswoman between 2009 and 2011.
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.
The notice informed workers they would receive a “final pay cheque, including your full compensation earned through your last day of work and all accrued, unused paid time off”.
It’s no secret the firm had been struggling recently, with Bloomberg reporting last month that it was searching for a buyer.
The publication revealed that the company had amassed around $US250 million ($374,000,000) in debt and was even weighing up filing for bankruptcy if a buyer could not be found.
People walk past a Jenny Craig weight loss store in Miami, Florida. Picture: Joe Raedle/Getty Images North America/Getty Images via AFP
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.
Just last week, the company was insisting it was more or less business as usual, with a spokesperson telling CNN that it was moving to e-commerce as a result of global trends, with staff members unaware of the serious troubles behind the scenes.
“Like many other companies, we’re currently transitioning from a brick-and-mortar retail business to a customer-friendly, e-commerce driven model,” the spokesperson said at the time.
“We will have more details to share in the coming weeks as our plans are solidified.”
According to NBC, employees were unaware of the company’s downward spiral.
The weight loss and nutrition business juggernaut 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.
Comedian Magda Szubanski was previously a Jenny Craig spokeswoman.
Jules Robinson committed to losing 20kg after signing on as the new face and body of Jenny Craig in 2021. Picture: Supplied
It was founded in 1983 in Melbourne, Australia by American husband-and-wife duo Jenny and Sidney Craig, who expanded the weight loss program into the US in 1985.
Over the years has attracted millions of clients worldwide with specially-designed menus to help customers shed the kilos.
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.
Over the decades, it has signed up countless household names to represent the brand, including the late Kirstie Alley, Mariah Carey and Seinfeld’s Jason Alexander.
Local celebrities have also flocked to Jenny Craig, including Magda Szubanski, Married At First Sight star Jules Robinson and Australian Idol’s Casey Donovan.
There has been widespread speculation that Jenny Craig had potentially been impacted by the soaring popularity of weight loss drugs such as Ozempic in recent times, as well as the push towards online services and away from in-person businesses.
However, despite the challenges the company was facing, it had been posting job openings online as recently as April, adding to the shock felt by staff members.
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