Jenny Craig, the renowned weight-loss company, has announced its permanent closure, expressing gratitude to its customers for their support over the past 40 years. The decision comes amidst reports of the company informing employees about layoffs and the termination of operations at its nearly 500 centers across the United States and Canada. This closure will leave about 1,000 individuals jobless, as reported by NBC News.
The company's official website now displays the same closure announcement as its Facebook page, and customers have been informed that all auto-delivery subscriptions are canceled. All coaching sessions, food orders, and merchandise sales have also ceased both online and in corporate centers.
Jenny Craig's program was known for providing nutritionally balanced meal plans to help individuals lose weight. Reports suggest that the company has a debt of around $250 million and was considering filing for bankruptcy if it couldn't find a buyer for its assets.
This development highlights the significant shifts in the weight-loss industry, driven by the increasing popularity of new prescription diabetes medications like Wegovy, Ozempic, and Rybelsus, which can also aid in weight loss. These drugs function by promoting insulin release and slowing down food digestion.
The FDA approved Ozempic for diabetes management in 2017 and Wegovy for weight loss in 2021. Conventional weight-loss businesses are now adapting to these changes. WeightWatchers, now known as WW International, has acquired Sequence, a telehealth subscription service linking patients with doctors who can prescribe weight-loss and diabetes medications. This $106 million purchase will grant WW entry into the expanding market for prescription weight-loss drugs.
Ozempic has gained attention partly due to its use by celebrities for weight loss. However, there are concerns about using diabetes medications for this purpose, including high costs and shortages, which are making it increasingly difficult for people with diabetes to access these drugs.
