Weight-loss brand Jenny Craig has begun liquidating its operations in the U.S. after efforts to ease a cash crunch fell short.
Jenny C Holdings and affiliates filed for Chapter 7 bankruptcy on Friday in Delaware, court papers show. The move means Jenny Craig will cease operating and see its assets sold off in pieces.
Jenny Craig acknowledged the wind-down on its website. Customers' auto-delivered subscriptions have been canceled, while coaching sessions and merchandise sales have ceased, the company said.
Since founder Jenny Craig opened the company's first brick-and-mortar location in 1983, diet fads have changed dramatically. Weight-loss drugs, at-home exercise machines and health-food stores have reshaped the industry landscape.
The firm, backed by HIG Capital, struggled to maintain enough cash in recent months as it stared down a first-lien term loan due in October 2024. It has searched for a buyer and held active discussions with lenders in an attempt to rework roughly $250 million of debt, Bloomberg previously reported.
The struggling diet company's Canadian division previously commenced liquidation proceedings in Vancouver, listing about $242 million owed to unsecured creditors, Bloomberg reported.
Known for its regimented programs to help members lose weight, the Carlsbad, Calif.-based company recently launched a new line that delivers fresh meals to customers. Jenny Craig has nearly 500 company-owned and franchised locations across the U.S. and Canada, and roughly 600 centers worldwide.
Information for this article was contributed by Erin Hudson of Bloomberg News (WPNS).