Jenny Craig declares bankruptcy, closes Oakville, Mississauga, Whitby, Brampton centres
Published May 9, 2023 at 4:36 pm
After 40 years of helping people lose weight, Jenny Craig is closing its doors.
The weight-loss chain announced Tuesday (May 9) it is declaring bankruptcy and shutting down operations in the U.S., Canada and possibly several other markets around the world.
The business, which sold pre-made meals and helped coach people trying to lose weight, has over 500 franchises in North America, including locations in Oakville (200 North Service Rd.), Mississauga (2400 Dundas St. W.), Brampton (295a Queen St. E), Whitby (80 Thickens Rd. S.) and St. Catharines (353 Lake St. 12b).
News of the chain’s demise first surfaced last week when it was reported the chain warned staff of possible major layoffs as it scramble to come up with the money to cover an upcoming debt payment.
Filings in Canadian court suggests Jenny Craig owes more than $323 million to several unsecured creditors in Canada.
Founded by American entrepreneur Jenny Craig in the 1970s, it was most recently purchased by private equity firm HIG Capital in 2019 for an undisclosed sum.
The weight-loss chain claimed competition from new drugs like Ozempic and free weight-loss apps had hurt weight-loss businesses like itself.
“Thank you to our loyal Jenny family,” a statement on the on the company’s website reads. “It’s with a heavy heart we’re announcing the close of our business.”
The announcement, which is effective immediately, will see the chain cease all activities, including cancelling all coaching sessions, food orders and merchandise sales.
In addition to have locations in North America, Jenny Craig also had centres in Australia and New Zealand.insauga's Editorial Standards and Policies advertising