Weight-loss program Jenny Craig announced this week on its website the business is shutting down.
Bloomberg reported that Jenny Craig has begun liquidating its operations in the U.S. after efforts to ease a cash crunch fell short.
Court papers filed in Delaware showed Jenny C Holdings and affiliates filed for Chapter 7 bankruptcy protection. The move means Jenny Craig will cease operating and see its assets sold off in pieces.
Jenny Craig acknowledged the move on its website, announcing that customers’ auto-delivered subscriptions have been canceled and that coaching sessions, food orders and merchandise sales have ceased, the company said.
According to Bloomberg, Jenny Craig, backed by HIG Capital, struggled to maintain enough cash in recent months as it stared down a first-lien term loan due in October 2024. It searched for a buyer and held active discussions with lenders in an attempt to rework roughly $250 million of debt, Bloomberg previously reported.
The struggling diet company’s Canadian division previously commenced liquidation proceedings in Vancouver, listing about C$324 million ($242 million) owed to unsecured creditors, Bloomberg reported.