A Jenny Craig motion hangs connected the partition extracurricular of the value nonaccomplishment store connected April 28, 2023 successful Miami, Florida.
Joe Raedle | Getty Images
Jenny Craig is being revived for e-commerce successful the coming months by the shaper of a rival weight-loss repast supplier that bought the defunct company's marque assets retired of bankruptcy.
Wellful Inc., a direct-to-consumer wellness concern that besides owns Nutrisystem, said it had acquired rights to Jenny Craig's intelligence spot for an undisclosed amount. Court documents dated June 2 amusement the IP priced astatine up to $10 million.
"People that person known the Jenny marque — the halfway aspects astir the large food, the coaching, the wide programme and the occurrence they antecedently had — they tin expect again," Wellful CEO Brandon Adcock said successful an interview.
Jenny Craig's website has teased a reboot successful caller weeks, saying it "will beryllium coming to your location this fall." Adcock said each erstwhile Jenny Craig customers person been notified by email and successful the brand's Facebook groups astir the relaunch.
"Our extremity is conscionable dainty them arsenic champion we tin to triumph backmost their business," helium said.
After 4 decades successful business, Jenny Craig, based successful Carlsbad, California, filed for Chapter 7 bankruptcy successful Delaware connected May 5, court records show. The filing came 2 days aft NBC News reported that the company had alerted employees to an imminent shutdown, which triggered a class-action lawsuit accusing absorption of violating 60-day-notice requirements for wide layoffs.
Jenny Craig couldn't beryllium reached for remark astatine the time. H.I.G. Capital, the $55 cardinal private-equity steadfast that acquired the marque for an undisclosed sum successful 2019, didn't respond to requests for remark astir the lawsuit oregon Wellful's acquisition.
The iconic weight-loss provider's adjacent enactment volition beryllium digital- and e-commerce driven, Adcock said. Members volition inactive beryllium capable to bid meals to their doorsteps and volition inactive get entree to personalized coaching, a halfway diagnostic that antecedently took spot crossed hundreds of carnal locations but volition present beryllium wholly virtual. Wellful's acquisition doesn't see immoderate Jenny Craig existent estate, helium said.
Wellful is simply a privately held company formed by the 2021 merger of Nutrisystem and Adaptive Health, which Adcock co-founded successful 2009. The institution is majority-owned by Kainos Capital, a Dallas-based private-equity steadfast specializing successful nutrient and user products, which closed a $1 cardinal fundraising round in February.
Traditional diet-and-exercise brands person faced stiffer contention from a rapidly expanding array of weight-loss drugs, specified arsenic Ozempic, that are soaring successful popularity. Adcock said helium remains assured that some Nutrisystem and a revamped Jenny Craig tin compete.
"The cognition we person of speaking to the user successful this class done our concern with Nutrisystem, we'll decidedly beryllium capable to bash that for Jenny Craig," helium said. But helium acknowledged that "it's evidently a precise changing environment" and said helium is watching the relation pharmaceuticals are playing successful the industry.
Adcock said Jenny Craig and Nutrisystem, which besides sells weight-loss-focused prepared meals but doesn't supply coaching, would beryllium tally separately wrong Wellful. He said prices astatine Jenny Craig would stay akin to what they were earlier its bankruptcy but declined to stock much details.
Since Jenny Craig went belly up, customers person voiced their sadness and vexation connected societal media. Some said they'd rushed to brick-and-mortar stores successful the days aft the shutdown quality to prime up their last repast orders earlier locations closed for bully successful aboriginal May. Several said they had failed to bash truthful and were inactive trying to get their wealth back.
In still-running backstage Facebook groups wherever members erstwhile gathered to stock weight-loss tips and support, nostalgic customers person been swapping recipes and cooking pointers to effort to re-create their favourite Jenny Craig meals. A fewer person posted excitedly astir the brand's expected revival, portion others vowed to ne'er return.
Jenny Craig had employed astir 1,000 radical successful the U.S. erstwhile it unopen down, respective firm staffers, including a quality resources official, said astatine the time. Adcock said Wellful is looking into hiring backmost immoderate erstwhile employees arsenic needed.
"We've already talked to a fig of coaches, and we'll proceed to speech to much astir coming into enactment connected the brand," helium said.
Jack Raisner, the lawyer representing erstwhile Jenny Craig employees successful the class-action suit filed successful May, said the lawsuit is connected clasp arsenic the bankruptcy tribunal deals with the company's remaining assets and liabilities. Wellful isn't affected by the class-action suit.
Raisner's clients are seeking outgo of wages they accidental they are owed nether authorities and national WARN Act rules, which mostly necessitate companies with astatine slightest 100 full-time workers to notify regulators and employees 60 days earlier wide layoffs oregon tract closures. The ailment alleges that hundreds of erstwhile Jenny Craig staffers could beryllium owed immoderate restitution.