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Weight Watchers parent WW stock falls amid report of layoffs at rival Jenny Craig

By James Rogers

Shares of Weight Watchers parent WW International Inc. fell 4.8% Wednesday after a report that rival Jenny Craig is planning to make layoffs

Shares of Weight Watchers parent WW International Inc. fell 4.8% Wednesday after a report that rival Jenny Craig is planning to make layoffs.

The S&P 500 index rose 0.3% Wednesday.

Citing internal communications to employees, NBC reports that Jenny Craig will shut its doors. In an email sent to employees late Tuesday Jenny Craig said it will close "due to its inability to secure additional financing," according to NBC. The company employs 1,000 people, the report said.

Related: Why Weight Watchers is buying a company that prescribes popular weight-loss drugs like Ozempic

Jenny Craig was acquired by private equity firm HIG Capital for an undisclosed amount in 2019.

MarketWatch has reached out to Jenny Craig and HIG Capital with a request for comment on this story.

WW International's (WW) stock has risen 99.9% in 2023, fueled by the weight-management and wellness company's purchase of weight-loss drug prescriber Sequence.

The Weight Watchers parent spent $132 million to acquire privately held Weekend Health Inc., which operates the Sequence telehealth platform. Sequence prescribes popular weight-loss drugs such as Ozempic, as well as diabetes drugs.

-James Rogers

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05-03-23 1411ET

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