Weight loss and nutrition giant Jenny Craig is on the brink of closure in the US but New Zealand and Australia operations are not affected.
Leaked internal communications indicated the weight loss brand will close its doors in the US after four decades of operations.
Corporate employees at the company's Carlsbad, California, office received an email giving them notice that it would close "due to its inability to secure additional financing", NBC reports.
The company operated about 500 company-owned and franchised stores in the United States and Canada when it was acquired by H.I.G Capital in 2019.
Bloomberg Law reported last month that the company was looking for a buyer, having taken on around NZ$400 million in debt, and was facing competition in new weight loss drugs such as Ozempic.
A spokesperson for Jenny Craig told 1News that "Jenny Craig USA are intending to file for bankruptcy".
"While this is unfortunate news for our colleagues in the USA, the Jenny Craig operations here in Australia and New Zealand do act independently.
"Here in Australia and New Zealand we currently continue to operate and support our clients."
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