Jenny Craig, the weight loss and nutrition business backed by HIG Capital, will shut down after four decades of operation after failing to secure additional financing, according to an employee. 

Management informed workers of the news in an email late Tuesday, and company-owned centers where members pick up meals, consult with coaches and weigh in are closed as of Wednesday, the employee said, adding that franchise-owned locations may remain open. 

Jenny Craig had been seeking a buyer as it struggles amid increased competition, including against much-hyped new weight loss drugs. With about 500 North American locations and around 600 centres worldwide, Jenny Craig was also hurt by the COVID pandemic as customers stayed home. 

Bloomberg News previously reported that the company was mulling bankruptcy if a buyer didn’t surface. The company also had plans to move to an online-only model but it’s unclear whether that will happen, the employee said. The company didn’t respond to a request for comment. 

The news was earlier reported by NBC. 

Jenny Craig employs more than 1,000 workers and corporate and salaried field employees’ last day will be May 5, according to the report, while hourly center employees’ last working day was Tuesday. Workers will receive a final paycheck, including full compensation through their last working day as well as unused paid time off, NBC said. 

--With assistance from Brandon Sapienza.