Jenny Craig Inc.’s Canadian division has commenced liquidation proceedings, public records show.
(Bloomberg) — Jenny Craig Inc.’s Canadian division has commenced liquidation proceedings, public records show.
JC Weight Loss Centers Canada Ltd. filed a bankruptcy proposal on Thursday in Vancouver under Canada’s Bankruptcy and Insolvency Act, which is a federal law used to liquidate businesses.
The company lists about C$324 million ($242 million) owed to unsecured creditors and appointed B. Riley Farber Inc. as its insolvency trustee, according to the filings.
Representatives at Jenny Craig and owner HIG Capital did not immediately respond to request for comment.
The US-based weight-loss services provider was in talks with lenders for months to rework about $250 million of debt and was running a sale process amid cash flow pressures, Bloomberg reported in March. By late April the company was considering filing for bankruptcy protection if a buyer did not materialize and would likely pursue a liquidation, Bloomberg reported.
Chief Executive Officer and President Mandy Dowson said at the time that the diet company was “transitioning from a brick-and-mortar retail business to a customer-friendly, e-commerce driven model.”
–With assistance from Natalie Obiko Pearson.
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