For a generation of people in both Australia and the United States, the name Jenny Craig became synonymous with weight loss. 

But after nearly four decades, Jenny Craig's operation in the United States has announced it's shutting its doors, having reportedly run out of money as it searched for a buyer.

The company's Australian business insists it's independent from its American counterpart and will not be affected.

In the US though, the impact of the collapse was swift.

"It's with a heavy heart, we're announcing the close of our business," a post on Jenny Craig's US Facebook page stated late last week.

"All auto-delivery subscriptions have been cancelled.

"All coaching sessions, food orders and merchandise sales have ceased online and in corporate centres."

The US closure comes at a time of significant change within the weight loss sector as companies like Jenny Craig grapple with shifting attitudes and the rising popularity of online services and appetite-suppressing drugs.

While some businesses look to adapt, critics of so-called diet culture warn the risks posed by the industry are only continuing to evolve.

From small Australian business to global empire:

Jenny Craig was founded in Melbourne in 1983 by American couple Jenny and Sid Craig, who moved to Australia after signing a two-year non-compete clause related to the sale of another business in the US.

"Immediately upon arriving at the airport in Australia, Sid could tell there was a great need for a comprehensive weight-loss program," Jenny Craig wrote in her 2004 autobiography.

"We were a little surprised to learn that the Australian lifestyle then was very similar to what ours in the United States was at that time."

On its website, the company credits its beginning with one woman, Jenny, who "struggled to lose weight after the birth of her second child" and realised there "weren't many sustainable options to help her reach her goal".

The company offered a structured diet plan in the form of weight-loss coaching and pre-packaged foods, and spread across Australia before expanding internationally.

"Jenny Craig was huge in the United States," trader and author Ed Ponsi said.

"In recent years we heard a lot less about it but in the 90s, for example, in the early 2000s, Jenny Craig was just everywhere.

"Their advertisements were on constantly and they were very popular."

As recently as 2019, the company appeared to be expanding its reach in the US, announcing it was launching in 100 stores of Walgreens, a large American pharmacy store chain.

The late actor Kirstie Alley was one of Jenny Craig's best-known brand ambassadors, completing two different stints with the company.

"Hey, you're chubby too," she says in one TV ad, looking into the camera.

"Let's lose weight together."

Another former spokeswoman, American actor and TV host Valerie Bertinelli, later spoke out against her time in the role, which included a 2009 swimsuit cover for People magazine.

"I had to practically starve myself the week before the photo shoot in order to feel comfortable getting into a bikini, and I obviously didn't keep the weight off," she said in her memoir last year.

"I feel guilty about the message I put out to people back then.

"I was part of the problem of diet culture and making women feel less than good about themselves unless they hit a certain number on the scale."

The dark side to diet culture:

Dietician and eating disorder specialist Jessica Setnick argues such programs promote unsustainable and unhealthy lifestyles.

"I think that those kind of companies thrive on not working," she said.

"And then someone goes on to try the next one and the next one, and they just have the revolving door of either the same or different customers.

"I also see the true negatives of those, which is not just, let's say, a failed weight-loss attempt, but also eating disorders developing, because we know that the number one trigger of eating disorders is changing your eating under stress."

Jenny Craig's Australian website describes its product as a "holistic approach" that has "helped millions of people unlock the best version of themselves with our proven weight loss plan".

But Ms Setnick argues diet culture in countries like the US is still rampant.

"I think that 'Appearance culture' is maybe even a more appropriate term because it's not always dieting, right? Sometimes it's related to over-exercising or body sculpting or cosmetic surgery," she said.

"It's the idea that you can change your body just because you want to.

"And not only that, but you should change your body, that either you owe it to yourself, or to society, or to your family, to your loved ones."

She fears that while younger generations might reject the more old-fashioned weight loss programs of decades past, the culture behind them has not shifted enough – meaning they may still be susceptible to whatever comes next.

"I'm thinking of some kind of movie character, you know, some made-up monster that just keeps morphing," she said.

"And morphing and morphing into something else every time you think you've conquered it."

Weight-loss drugs have shaken up the industry:

One of the biggest changes to the weight-loss sector has come in the form of injectable drugs, which have soared in popularity among celebrities and on social media.

Under the brand name Ozempic, the drug semaglutide is sold as a way of treating type 2 diabetes.

The higher dosage product, Wegovy, is prescribed to treat obesity.

But semaglutide's broader use as a "quick-fix" weight-loss aid has become an open secret in Hollywood and on social media platforms such as TikTok.

Comedian Jimmy Kimmel even used his monologue at this year's Oscars ceremony to poke fun at its prevalence.

"Everybody looks so great, when I look around this room I can't help but wonder: 'Is Ozempic right for me?'" he said, prompting laughter from the audience.

Some experts have urged caution around the increased uptake of semaglutide, pointing to potential side effects and the shortages being experienced by people who need it.

Another diabetes drug, known as tirzepatide and sold as Mounjaro, is also now being talked up, with its manufacturers seeking US approval to use it to treat obesity.

Mr Ponsi said the emergence of such drugs had already had a noticeable effect on the industry, with companies like Jenny Craig feeling the pressure.

He points to the decision of its competitor, Weight Watchers, to acquire a telehealth company able to prescribe weight loss drugs as an example of how the sector is trying to adapt.

"It is our responsibility, as the trusted leader in weight management, to support those interested in exploring if medications are right for them," the company's chief executive Sima Sistani said in a statement earlier this year.

The statement suggests weight-loss companies could use the disruption to their advantage, by putting themselves in a position where they're "Not necessarily aligned against these new drugs" and "can refer clients to this platform", according to Mr Ponsi.

"I don't know if it's going to work in the long run, but I do think the stock has done tremendously well this year," he said.

Above | Jenny Craig and her late husband, Sid Craig, opened their first Jenny Craig Weight Loss Centre in 1983.

Original Story By | Jade Macmillan