Weight loss and nutrition company Jenny Craig will shut its 500 retail locations in the U.S. and Canada on Friday, CNBC reports.

Hourly call center employees’ last working day was Tuesday, according to internal employee communications CNBC has reviewed.

Jenny Craig, which employees 1,000 people in the U.S. and has been in business for 40 years, said it was closing “due to its inability to secure additional financing.”

The company, headquartered in Carlsbad, Calif., says it will transition to an e-commerce model.

Acquired by private equity firm H.I.G. Capital in 2019 for an undisclosed amount, Jenny Craig was in search for a buyer for the past two weeks. Two employees said they fear that the company will file for bankruptcy by the end of the week.

Founded in 1983, the Jenny Craig brand became a household name synonymous with losing weight with chef-inspired menus touted by celebrity brand ambassadors including Kirstie Alley, Mariah Carey, Valerie Bertinelli and Jason Alexander.

In recent years, Jenny Craig faced stiff competition from weight-loss pharmaceutical drugs, such as Ozempic, Rybelsus and Wegovy.

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