Weight loss company Jenny Craig is closing hundreds of locations across North America this week, including its corporate offices, as it shifts to an online model amid struggles to survive.
What’s happening: NBC News initially reported that Jenny Craig sent notice to all staff that it is “winding down physical operations.”
- The company said there was a potential for mass layoffs in Canada and the United States, and that the changes will “likely impact all employees in some manner.”
- Many of its 500-plus physical locations will be shuttered as it transitions to an e-commerce model, with staff moving to a work-from-home concept.
- Jenny Craig will close its San Diego and New Jersey headquarters as well, possible within a matter of days.
- “Like many other companies, we’re currently transitioning from a brick-and-mortar retail business to a customer-friendly, e-commerce driven model,” said CEO and President Mandy Dowson in an interview with Bloomberg.
Further explanation: The announcement comes as the weight loss company struggles with $250 million of debt.
- It is trying to re-work its debt with lenders and is looking for a buyer.
- Jenny Craig may file for bankruptcy in Canada and the U.S. if its efforts to find a buyer fail.
- The weight loss industry has taken a hit following the surge in popularity of weight loss drugs, such as Ozempic.
Impact on Canadian staff
Jenny Craig has not shared the extent of the impact that layoffs and closures will have on its Canadian staff.
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