After four decades in business, Carlsbad-based Jenny Craig is reportedly shutting down its weight-loss centers and preparing for mass layoffs.
Reports from multiple news outlets Wednesday said the company, which operates nearly 500 storefronts in Canada and the U.S., will begin letting staff go as it looks for a buyer.
In an email sent to employees Tuesday, and obtained by NBC, the company said it will close “due to its inability to secure additional financing.” The memo said corporate and salaried field employees’ final day will be Friday, and hourly employees will be out of a job next week.
The memo, titled “Jenny Craig Company Transition FAQs,” informed workers that it would be “winding down physical operations” and “has been going through a sales process for the last couple of months.”
“While we had to issue Warn Notices specifically for sites where we had more than 50 people potentially impacted, this will likely impact all employees in some manner,” the document stated, according to NBC.
Bloomberg reported last week that the company, which was founded in 1983, is currently carrying about $250 million of debt and is considering filing for bankruptcy if it cannot find a buyer for its assets.
“Like many other companies, we’re currently transitioning from a brick-and-mortar retail business to a customer-friendly, e-commerce driven model. We will have more details to share in the coming weeks as our plans are solidified,” a spokesperson for Jenny Craig said in a statement.
