HomePoliticsCompany That's Been Around for 40 Years Confirms It Is Closing Doors...

Company That’s Been Around for 40 Years Confirms It Is Closing Doors for Good

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The Jenny Craig chain of weight loss centers ceased operations last week, resulting in a lawsuit filed by employees who claim they were not given the required notice.

“It is with a heavy heart, we’re announcing the close of our business. The last 40 years would not have been possible without you,” the company abruptly announced Thursday on Facebook.

The message stated that all subscriptions with automatic delivery had been terminated.

The notice also ceased all coaching sessions, food orders, and other activities in the centers and online.

According to WXMI, the company operated nearly 500 weight-loss centers in the United States and Canada, but confronted fierce competition from weight-loss medications such as Ozempic, Wegovy, and Mounjaro.

In 1983, Craig founded the business.

According to NBC, a lawsuit filed last week in New Jersey’s U.S. District Court alleges that the company violated the Worker Adjustment and Retraining Notification Act by closing its doors without providing employees with the required notice.

The WARN Act mandates that employees, state and local governments be notified when a business with more than 100 employees plans to close or lay off workers.

According to NBC, New Jersey employees were notified that they could lose their employment within 60 days, or possibly sooner.

“Legally, per the Warn Act, employees reporting to the Corporate Office and NJ centers are entitled to pay for the full Warn Act notice period. However, as the financial status of the company is still in flux, it is not clear whether the separation date may be before 6/24 for Corporate and 7/24 for NJ centers and could be as early as next Friday 5/5. If it is before the full Warn Act notice date, we may not be in a position to continue payments to the employees for the full warn notice period.”

Although employees were informed that they would be paid for accrued time off, Jack Raisner, an attorney for the employees, stated that they are entitled to complete pay for 60 days from the date of the notification and referred to the notice as a “head fake.”

“It’s important to people. It throws people into an enormous upheaval and free fall actually,” he said of losing work suddenly.

NBC stated that HIG Capital now owns Jenny Craig.

Bloomberg reports that the company had $250 million in debt and was seeking a buyer in order to avoid liquidation.

Jenny Craig’s demise coincides with a period of profound change in America. After nearly 50 years in business, Tuesday Morning recently announced that all of its stores will be closing.

Bed Bath & Beyond filed for reorganization under Chapter 11 of the federal bankruptcy laws late last month.

CNN reported an increase in retail sector bankruptcies. The news source cited relatively recent filings by Party City, mattress manufacturer Serta Simmons, and pet store retailer Independent Pet Partners. David’s Bridal, a national retailer of wedding gowns, has also recently filed for Chapter 11 reorganization.

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