• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick Jenny Craig will be revived by the owner of diet meal maker Nutrisystem
Editor's Pick

Jenny Craig will be revived by the owner of diet meal maker Nutrisystem

by July 6, 2023
by July 6, 2023 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Jenny Craig is being revived for e-commerce in the coming months by the maker of a rival weight-loss meal provider that bought the defunct company’s brand assets out of bankruptcy.

Wellful Inc., a direct-to-consumer wellness business that also owns Nutrisystem, said it had acquired rights to Jenny Craig’s intellectual property for an undisclosed amount. Court documents dated June 2 show the IP priced at up to $10 million.

“People that have known the Jenny brand — the core aspects around the great food, the coaching, the overall program and the success they previously had — they can expect again,” Wellful CEO Brandon Adcock said in an interview.

Jenny Craig’s website has teased a reboot in recent weeks, saying it “will be coming to your home this fall.” Adcock said all former Jenny Craig customers have been notified by email and in the brand’s Facebook groups about the relaunch.

“Our goal is just treat them as best we can to win back their business,” he said.

After four decades in business, Jenny Craig, based in Carlsbad, California, filed for Chapter 7 bankruptcy in Delaware on May 5, court records show. The filing came two days after NBC News reported that the company had alerted employees to an imminent shutdown, which triggered a class-action lawsuit accusing management of violating 60-day-notice requirements for mass layoffs.

Jenny Craig couldn’t be reached for comment at the time. H.I.G. Capital, the $55 billion private-equity firm that acquired the brand for an undisclosed sum in 2019, didn’t respond to requests for comment about the case or Wellful’s acquisition.

The iconic weight-loss provider’s next act will be digital- and e-commerce driven, Adcock said. Members will still be able to order meals to their doorsteps and will still get access to personalized coaching, a core feature that previously took place across hundreds of physical locations but will now be completely virtual. Wellful’s acquisition doesn’t include any Jenny Craig real estate, he said.

Wellful is a privately held company formed by the 2021 merger of Nutrisystem and Adaptive Health, which Adcock co-founded in 2009. The company is majority-owned by Kainos Capital, a Dallas-based private-equity firm specializing in food and consumer products, which closed a $1 billion fundraising round in February.

Traditional diet-and-exercise brands have faced stiffer competition from a rapidly expanding array of weight-loss drugs, such as Ozempic, that are soaring in popularity. Adcock said he remains confident that both Nutrisystem and a revamped Jenny Craig can compete.

“The knowledge we have of speaking to the consumer in this category through our business with Nutrisystem, we’ll definitely be able to do that for Jenny Craig,” he said. But he acknowledged that “it’s obviously a very changing environment” and said he is watching the role pharmaceuticals are playing in the industry.

Adcock said Jenny Craig and Nutrisystem, which also sells weight-loss-focused prepared meals but doesn’t provide coaching, would be run separately within Wellful. He said prices at Jenny Craig would remain similar to what they were before its bankruptcy but declined to share more details.

Since Jenny Craig went belly up, customers have voiced their sadness and frustration on social media. Some said they’d rushed to brick-and-mortar stores in the days after the shutdown news to pick up their final meal orders before locations closed for good in early May. Several said they had failed to do so and were still trying to get their money back.

In still-running private Facebook groups where members once gathered to share weight-loss tips and support, nostalgic customers have been swapping recipes and cooking pointers to try to re-create their favorite Jenny Craig meals. A few have posted excitedly about the brand’s expected revival, while others vowed to never return.

Jenny Craig had employed around 1,000 people in the U.S. when it shut down, several corporate staffers, including a human resources official, said at the time. Adcock said Wellful is looking into hiring back some former employees as needed.

“We’ve already talked to a number of coaches, and we’ll continue to talk to more about coming into work on the brand,” he said.

Jack Raisner, the lawyer representing former Jenny Craig employees in the class-action lawsuit filed in May, said the case is on hold as the bankruptcy court deals with the company’s remaining assets and liabilities. Wellful isn’t affected by the class-action suit.

Raisner’s clients are seeking payment of wages they say they are owed under state and federal WARN Act rules, which generally require companies with at least 100 full-time workers to notify regulators and employees 60 days before mass layoffs or site closures. The complaint alleges that hundreds of former Jenny Craig staffers could be owed some restitution.

This post appeared first on NBC NEWS
You Might Also Like
  • CVS is under pressure and considering a breakup. Here’s why that could be risky.
  • Oil executives bluntly criticize Trump tariffs and ‘drill, baby, drill’ mantra
  • As ‘Dry January’ becomes more popular, some express sticker shock at the price of mocktails
  • Fed officials see ‘upside risks’ to inflation, possibly leading to more rate hikes, minutes show
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Lawmakers rattled by AI-launched nukes, demand ‘human control’ in defense policy bill
next post
Expect A Very Strong Earnings Report From This High Flyer!

You may also like

Mortgage refinance demand jumps to a 2-year high, as interest...

July 17, 2024

United Airlines CEO responds to string of safety incidents that...

March 20, 2024

Sinclair explores selling roughly 30% of its broadcast stations, sources...

May 11, 2024

Nvidia overtakes Apple as world’s most valuable company

October 28, 2024

Protesters stage sit-in outside New York Stock Exchange to spotlight...

October 15, 2024

SEC dropping crypto lawsuit, Coinbase says

February 22, 2025

Shaking seats and piped-in fog: How 4DX is carving out...

May 29, 2024

McDonald’s revenue disappoints, as U.S. sales see worst drop since...

February 11, 2025

Microsoft fires back at Delta after massive outage, says airline...

August 8, 2024

Southwest to get rid of open seating, offer extra legroom...

July 26, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout, pulls outlook

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025
    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against strict U.S. chip controls

      May 7, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,632 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,339 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,320 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,303 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,186 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout,...

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Lowe’s becomes latest company to dial...

    August 29, 2024

    JetBlue to partner with another U.S....

    April 30, 2025

    Disney accused of withholding hundreds of...

    August 16, 2023
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here