Jenny Craig USA notified staff this week that its finances are famished after stacking on $374 million in debt in recent years.
Launched in Melbourne in 1983, the company expanded rapidly into 115 countries, signing up celebrities to throw their weight behind the brand as the name Jenny Craig became synonymous with weight loss.
Jenny Craig was sold for over $800 million to Nestle in 2006 and then to HIG Capital in 2019.
But recently, profits have steadily been on the decline, with diet drugs and web-based weight loss solutions starving the company of clients.
One thousand U.S. staff and 500 franchisees have been given notice, but Jenny Craig Australia says the weight loss journey continues Down Under for now.
