July 6, 2023
Nutrisystem’s parent company Wellful is reviving the brand this fall in a “convenient direct-to-consumer delivery model,” the company announced Wednesday. Jenny Craig went belly up in May after more than 40 years in business because of growing competition from other diets and the demand for weight loss drugs like Ozempic and Wegovy.
Jenny Craig’s weight loss centers won’t be reopened — the company will operate entirely online. Jenny Craig won’t be combined with any of Wellful’s other brands, notably Nutrisystem. Rather, it will be managed separately and be an independent brand within Wellful’s portfolio. The company also operates Nugenix, Lumiday and Instaflex. Jenny Craig will be going fully digital, while still offering meals, as well as personalized online coaching.
A price wasn’t disclosed, but court filings show Jenny Craig’s intellectual property to be priced up to $10 million.
Wellful CEO Brandon Adcock told CNBC that all former Jenny Craig customers have been contacted by email and in the brand’s Facebook groups about the relaunch.
Diet Business Watch.com Commentary
We are not surprised by this action, and had indicated that it was likely that some buyer would come along to take advantage of the company’s long-established brand name, reputation and assets. If Wellful did get ownership of these assets for just $10 million, it was a bargain. Building a national brand costs a lot more than $10 million.
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