Weight loss brand Jenny Craig has begun liquidating its operations in the U.S. after efforts to ease a cash crunch fell short, Bloomberg News reported. Jenny C Holdings LLC and affiliates filed for chapter 7 bankruptcy on Friday in Delaware, court papers show. The move means Jenny Craig will cease operating and see its assets sold off in pieces. Jenny Craig acknowledged the wind-down on its website. Customers’ auto-delivered subscriptions have been canceled, while coaching sessions and merchandise sales have ceased, the company said. Since founder Jenny Craig opened the company’s first brick-and-mortar location in 1983, diet fads have changed dramatically. Weight-loss drugs, at-home exercise machines and health-food stores have reshaped the industry landscape. The firm, 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 has searched for a buyer and held active discussions with lenders in an attempt to rework roughly $250 million of debt.
