Jenny Craig Denies Closing British Clinics
Jenny Craig Inc., the Del Mar-based operator and franchiser of weight-loss centers, Wednesday disputed a British newspaper report that 33 of its centers in the United Kingdom had closed down because of financial problems of the British franchisee running them.
In its Tuesday Editions, the Today newspaper reported that 33 Jenny Craig clinics, all situated in the greater London area, “went bust” this week because of “massive debts.”
Weight-loss clients--the newspaper described them as “shocked slimmers”--were informed of the closings in telephone calls Sept. 3. Many had already paid the $335 annual fee that the centers charge, the newspaper said.
Jenny Craig Inc. spokesman Phillip Myers denied Wednesday that the centers had closed, but said closures are “being contemplated.” He acknowledged that the company’s British franchisee, Jenny Craig Weight Loss Centres (U.K.) Ltd., and its managing director, Jeremy Beloff, were having financial problems. The U.K. centers have been open about three years.
“It’s undecided whether (the centers) are going to stay open or close. The franchisee is reviewing his operations,” Myers said. “There have been some market challenges in the U.K. . . . This is an unusual situation for Jenny.”
Myers declined to discuss what the company’s options are if the United Kingdom operation was too fail.
The Jenny Craig Weight Loss Centres chain has grown rapidly since its founding in 1982 by wife and husband, Jenny and Sid Craig. System-wide revenues will reach $500 million in 1990, or double last year’s sales, Myers said.
The centers, which offer weekly weight-watching classes and sell low-calorie packaged diet foods, now total 570 in the U.S., Australia and the United Kingdom. The number of U.S outlets has grown to 433 from just 14 in 1985.
The company, which owns 70% of its centers, has been rapidly gaining on industry leaders Nutri/System and Diet Centers, each of which have more than 1,000 storefronts. Company officials have said they expect 1,000 Jenny Craig Weight Loss Centres to be open in the United States alone by the end of 1993.
