Jenny Craig to continue in Australia despite US closure

·2-min read

Weight loss giant Jenny Craig will continue its operations in Australia and New Zealand, despite announcing plans to shut down its corporate offices in the US.

In an email to its more than 1000 employees on Tuesday night, the company revealed it will close its California headquarters and transition to an e-commerce model following reports it failed to secure additional financing.

A representative said the decision would not affect operations in Australia and New Zealand.

"You may have heard the news that Jenny Craig USA are intending to file for bankruptcy," a company statement to AAP on Thursday read.

"While this is unfortunate news for our colleagues in the USA, the Jenny Craig operations here in Australia and New Zealand do act independently.

"Here in Australia and New Zealand we currently continue to operate and support our clients. As always, our priority is to continue providing the best possible service. We thank you for your continued patience and support during this time."

After facing financial difficulties brought on by the COVID-19 pandemic, Jenny Craig has reportedly also struggled against increasing competition in recent years, including a surge in weight loss drugs.

The company was founded in Melbourne in 1983 and grew to become a household name as one of the biggest weight management companies in the world.

It has more than 500 locations in North America and about 600 centres globally.

Its main services consist of one-on-one personalised support with nutrition and lifestyle planning.

Various celebrities have been featured as ambassadors over the years including singer Mariah Carey and former Spice Girl Mel B (Melanie Brown).

More locally, comedian Magda Szubanski and the late Barry Humphries and his alter ego Dame Edna Everage were also ambassadors.

Private equity investment firm H.I.G. Capital bought Jenny Craig in 2019 for an undisclosed sum.