Medifast, Inc. (NYSE: MED), a leading United States manufacturer and provider of clinically proven, weight-loss products and programs, announced today the plan by a subsidiary to close 34 corporate-owned Medifast Weight Control Centers by December 31, 2014.
Medifast also expects its subsidiary to sell the assets of 17 corporate-owned Medifast Weight Control Centers to existing business partners, which would then be transitioned to the franchise model.
Exiting the corporate Center model is consistent with our long-term strategy and will allow us to focus on optimizing the performance of our franchise partners, said Michael MacDonald, Chairman and Chief Executive Officer of Medifast. We will continue to leverage our multi-channel distribution approach across franchised Medifast Weight Control Centers, Take Shape For Life, Medifast Direct, and Medifast Medical Providers.
By providing unique support offerings, we meet customers where they are in their weight-loss or weight-management journey and provide healthy living tools for long-term wellness.
The Company will offer severance to impacted employees and the unique opportunity to become a Take Shape For Life Health Coach. Affected Center members will have several options to continue their programs with Medifast. Members can opt to transition to nearby franchised Medifast Weight Control Centers, get a free health coach with Take Shape For Life, or purchase products through the Medifast Direct ecommerce site or Client Solutions Center.