Labor/Employment
Jan. 10, 2024
Jenny Craig mass layoff brings suit against prior owners
“Because we cannot go after an entity that does not exist, we went after H.I.G., which has funds to reimburse employees, and a bank that ran Jenny Craig for a period of time,” plaintiffs’ attorney Jackie R. Kruger said.
Dozens of Jenny Craig’s former employees sued the prior owners of the weight loss giant for unpaid wages stemming from its sudden closure last year. But the company’s bankruptcy proceedings in Delaware will almost certainly complicate their efforts.
“It’s rare for a company this big to wind up in Chapter 7 liquidation. Usually it’s Chapter 11. The fact that it’s Chapter 7 is a disaster. There probably wasn’t enough money to sustain a Chapt...