The famed weight loss and nutrition company filed for Chapter 7 bankruptcy in May after four decades in business
Jenny Craig, the famed weight loss and nutrition company that folded this past May, is getting a second chance to hit it big in the wellness industry after being acquired by Wellful Inc.
As a direct-to-consumer and omnichannel health and wellness company, Wellful Inc. says Jenny Craig is slated to make a comeback this fall with a DTC delivery model with tasty, nutritious food and personalized coaching.
While terms of the deal were not disclosed, numerous reports reveal that court documents from the recent acquisition show Jenny Craig’s intellectual property priced at up to $10 million.
Wellful also owns Nutrisystem but confirms it will manage Jenny Craig separately as an independent brand. In addition to Nutrisystem, Wellful’s vast portfolio also includes wellness brands such as Peptiva, Instaflex, Nugenix, Super Beta Prostate and Dr. Sinatra.
Just three months ago, Jenny Craig emailed employees that the weight loss brand would lay off all employees before officially announcing that it would go out of business. By May 5, Jenny Craig filed for Chapter 7 bankruptcy.
Brandon Adcock, CEO of Wellful, commented that more than ever before, consumers are seeking integrated and convenient health and wellness solutions, especially those that are delivered quickly to their door.
Adcock says the acquisition will allow the e-commerce supply chain to meet consumers’ expectations.
“We will allow customers to access all the things that made Jenny Craig successful – the food, the structure, the program, the coaching – while providing access to our broader portfolio of health & wellness solutions to empower customers to live happier, healthier lives,” Adcock said.
“Over the last 40 years, Jenny Craig has been committed to helping people lose weight and live healthier lives, and this acquisition not only reaffirms, but strengthens that commitment,” he added. “The Wellful platform is comprised of brands that help consumers achieve clinically validated outcomes. Simply put, consumers come to us to achieve their goals and they expect results. We couldn’t be more excited to bring that same experience to past and future Jenny Craig customers.”
Jenny Craig’s website currently features a landing page announcing the news that the beloved weight loss company would be coming to homes this fall via delivery.
If comments on social media are any indication, former Jenny Craig followers appear excited over the news of the upcoming fall return.
“I will definitely be into this,” wrote one poster on Facebook. “I love the food and delivery is the way to go for me. I hope it’s early fall and not closer to winter. I would sign up next week if I could.”
Jenny Craig’s transition to e-commerce signals a larger trend others have recently followed, with wellness going digital and, at times, injectable.
Earlier this year, WeightWatchers announced the acquisition of Sequence, a telehealth provider that gives clients access to diabetes and weight loss medications such as Ozempic. The deal, valued at $132 million, is the first of its kind for WeightWatchers and one that its CEO, Sima Sistani, called a natural next step, especially in light of the advancements in chronic weight management medications. It’s also a lucrative move, as industry experts suggest that the weight loss drug market is expected to hit $100 billion by 2030.
While many WeightWatchers members were pleased with the additional offering, other devotees were mixed on the new pivot, especially as the wellness company said it would cut back in-person meetings.
While Jenny Craig is expected to return this fall, the DTC meal model can prove challenging, as Freshly, a Nestlé-acquired meal delivery service, discovered.
Freshly closed its operations in January after being acquired by Nestlé in 2020 in a $1.5 billion deal. At one point, the meal delivery company that focused on limiting sugar and processed ingredients was shipping over a million meals each week.
Nestlé CEO Mark Schneider acknowledged the decline of Freshly in an investor seminar late last year, indicating that it was a deal that didn’t fully meet Nestlé’s objectives.
Courtney Rehfeldt has worked in the broadcasting media industry since 2007 and has freelanced since 2012. Her work has been featured in Age of Awareness, Times Beacon Record, The New York Times, and she has an upcoming piece in Slate. She studied yoga & meditation under Beryl Bender Birch at The Hard & The Soft Yoga Institute. She enjoys hiking, being outdoors, and is an avid reader. Courtney has a BA in Media & Communications studies.