OWINGS MILLS, Md., Dec. 6, 2013 /PRNewswire/ -- Medifast, Inc. (NYSE: MED), a leading United States manufacturer and provider of clinically proven, portion-controlled weight-loss products and programs, today announced that it has commenced implementation of its Weight Control Center strategic plan. The first step in implementation will be to close eight under-performing corporate-owned Medifast Weight Control Centers, effective December 31, 2013. The Company also expects to sell the assets of approximately 10 to 15 existing corporate-owned Medifast Weight Control Centers to an existing business partner in the first half of 2014, which would then be transitioned to the franchise model.
Michael MacDonald, Chairman and Chief Executive Officer, stated that, "The closure of these centers and this initial transition of centers to the franchise model are consistent with our long-term strategy to better position the Medifast Weight Control Center sales channel for profitable growth. We will continue our efforts to identify new franchise partners and continue to invest resources in the remaining corporate Centers during the transition period. Looking ahead, we believe we are well positioned with a strong foundation across our multi-channel model including Take Shape for Life, Medifast Direct, Medifast Weight Control Centers and Wholesale Physicians."
The Company expects to incur a one-time charge of approximately $2.5 million in the fourth quarter of 2013 related to the center closures.
Medifast (NYSE: MED) is the leading easy-to-use, clinically proven, portion-controlled weight-loss program. The company sells its products and programs via four unique distribution channels: 1) the Web and national call centers, 2) the Take Shape For Life personal coaching division, 3) Medifast Weight Control Centers, and 4) a national network of physicians. Medifast was founded in 1980 and is located in Owings Mills, Maryland. For more information, log onto www.MedifastNow.com.
SOURCE Medifast, Inc.