Printer Friendly

NUTRI/SYSTEM INC. COMPANY-OWNED CENTERS UNABLE TO OPERATE DUE TO BANK ACTION

 BLUE BELL, Penn., April 28 /PRNewswire/ -- Nutri/System, Inc. and its officers were informed late yesterday by Fidelity Bank that as agent for a seven member bank consortium it had seized all of the company's cash and had taken control of all of the company's bank accounts. This unwarranted move, made without warning, has left Nutri/System's company- owned centers unable to continue to operate.
 As a result of the bank's action, Nutri/System was forced to instruct its approximately 1,800 company employees not to report to work, causing 283 company-owned weight management centers to close immediately.
 Nutri/Systems's 857 U.S. franchisee centers and its Canadian operations will continue to operate and consumers are encouraged to continue to use their weight management services.
 The bank's action comes after Nutri-System negotiated in good faith for several months with several viable investors in an attempt to restructure the company. The banks were aware of those negotiations and Nutri/System had been advised that the banks did not oppose the company's plans.
 Fidelity Bank (PA.), Mellon Bank (PA.), Provident National Bank (PA.), Credit Du Norde (NY), Continental Bank (IL.), Maryland National Bank (MD.), and Canadian Imperial Bank of Commerce (NY.) are members of the bank consortium.
 A company spokesman said "Nutri/System is appalled by this action that affects our employees and customers. This is a sad day for employees who have dedicated their lives to helping people lose and manage their weight through our program. It is equally sad for customers who need and use Nutri/System's program to improve their health and self-esteem.
 -0- 4/28/93
 /CONTACT: Nutri/System, Inc., 215-940-3000/


CO: Nutri/System, Inc. ST: Pennsylvania IN: HEA SU:

TM -- NY121 -- 2373 04/28/93 19:54 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 28, 1993
Words:291
Previous Article:TINA TURNER'S 'WHAT'S LOVE GOT TO DO WITH IT' SET FOR JUNE 15; NORTH AMERICAN TOUR TO BEGIN ON JUNE 6
Next Article:DONALD L. PIERCE IS NAMED PRESIDENT AND CEO OF ARBY'S, INC.
Topics:


Related Articles
NUTRI/SYSTEM PHILADELPHIA CO-OP SELECTS THE WEIGHTMAN GROUP
JENNY CRAIG OFFERS WEIGHT MANAGEMENT SERVICES TO NUTRI/SYSTEM CLIENTS AT NO ADDITIONAL FEE
DIET CENTER ISSUES STATEMENT
AGREEMENT REACHED TO KEEP NUTRI/SYSTEM IN BUSINESS
NUTRI/SYSTEM TAKES LEAD ON FEDERAL TRADE COMMISSION CONSENT DECREE
REGAL COMMUNICATIONS CORPORATION PROPOSES ACQUISITION OF NUTRI/SYSTEM
NUTRI/SYSTEM PREPARES TO EMERGE FROM CHAPTER 11
NUTRI/SYSTEM GETS NEW OWNER AND OUTLOOK
Complete Wellness Centers, Inc. Completes Purchase Of 58 Nutri/System Weight Loss Centers
Jenny Craig Promotes Philip Voluck to President.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters