Jenny Craig lives on! Weight loss empire is to be revived as an online business

Weight loss company Jenny Craig is poised for a resurgence as an online business just two months after it filed for bankruptcy.

Founded in 1983, the company was acquired by fellow wellness provider Wellful and will continue as a direct mail business later this year.

Jenny Craig was known around the world for their personalized weight loss centers and ready-made meal plans designed to help customers lose weight.

But after four decades in business, the company has struggled to compete with growing competition from other popular diet and weight-loss drugs like Ozempic.

In May, executives announced that physical operations would be halted as the company filed for bankruptcy. At that time, the company employed around 1,000 people in the USA

Jenny Craig was founded in 1983 by Craig and her husband Sid, but they were increasingly struggling to keep up with trendy weight-loss drugs like Ozempic. The couple is pictured together

The brand’s intellectual property has been acquired by wellness brand Wellful – meaning it will continue to operate online

Wellful – owner of the Nutrisystem low-calorie meal brand – plans to keep its weight loss centers closed but will continue to sell its meal plans online. Coaching sessions will also be available digitally

It didn’t disclose how much Wellful spent acquiring the Jenny Craig brand, but June court filings estimated the brand’s intellectual property to be worth as much as $10 million.

Wellful chief executive Brandon Adcock said in a statement: “For the past 40 years, Jenny Craig has been committed to helping people lose weight and lead healthier lives.”

“This acquisition not only reaffirms that commitment, it strengthens it.”

Entrepreneur Jenny Craig co-founded the company with her husband Sid, opening their first center in Melbourne, Australia before expanding into the United States.

By 1991, the company had 164,000 customers worldwide, more than 400 company-owned centers and 220 franchised locations.

The brand’s physical wellness centers will be closed, but online operations will remain

At its peak, the Craig’s brand had 164,000 customers worldwide, more than 400 company-owned centers and 220 franchises

It also attracted a number of celebrities, including actresses Kirstie Alley and Valerie Bertinelli.

The chain has a turbulent history and has changed hands frequently. In 2006, it was bought by food and beverage giant Nestlé in a $600 million deal.

In 2013 it was sold again to private equity firm North Castle before being sold again in 2019 by a second private equity firm, HIG

This is happening because traditional diet and exercise brands are struggling to cope with competition from increasingly popular weight-loss drugs like Ozempic.

The drug, which was developed to treat diabetics, was so popular that it caused a global shortage earlier this year.

It has been linked to a variety of celebrities including Mindy Kaling, Amy Schumer and most recently Christina Hendricks.