Weight-loss company Jenny Craig has filed for bankruptcy and announced that it is exiting Canada and other markets around the world.
The business, which provides pre-made meals and coaching to millions of people trying to lose weight, is closing 500 franchises in Canada and the U.S. after filing for Chapter 11 bankruptcy.
The company was founded by American entrepreneur Jenny Craig in the 1970s but changed ownership several times, most recently in 2019 when it was purchased by private equity firm HIG Capital.
The chain's ongoing financial troubles proved to be too much and the company has now filed for bankruptcy in both the U.S. and Canada.
Court records show that Jenny Craig owes more than $323 million to creditors in Canada.
The bankruptcy of Jenny Craig comes amid weakness in the weight-loss industry coming out of the Covid-19 pandemic.
Weight-loss companies also face growing competition from several new prescription drugs such as Ozempic that are designed to help people lose weight by taking a pill or injection.
Industry data shows that Canada's weight-loss industry generated about $350 million in revenue during 2022, declining an average of 0.1% a year over the past five years.