Feeding Frenzy

It didn't take long for the vultures to get wind of the financial collapse of Nutri/System. Heavy debt forced the diet center to close its headquarters and 283 company-owned weight-loss clinics. As Nutri/System struggled to find a buyer, its competitors ran ads to lure the company's customers. Jenny Craig offered to sign up abandoned calorie counters at "no additional service fee," while stressing that it is "a debt-free, $500 million company." Weight Watchers told Nutri/System customers, "Don't worry." At week's end Heico Acquisitions of Chicago tentatively agreed to manage the firm while seeking to buy it. The deal must be approved...

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