The news of Jenny Craig Australia and New Zealand entering voluntary administration comes a week after the weight loss business filed for bankruptcy and closed Jenny Craig’s physical locations in the US.
The US business searched for a buyer for two weeks, running out of money after there were no takers.
Six days ago, that news prompted the local operation to reassure customers that “Jenny Craig Australia and New Zealand operates independently from the USA.
“This means that our local operations are unaffected by the recent news regarding Jenny Craig USA centre closures.
“Rest assured we are continuing to operate and support you, our valued clients across Australia and New Zealand on your weight loss journey either in-centre or online.”
An ASIC published notice on Tuesday confirmed FTC Consulting has been appointed voluntary administrator, led by Joseph Hansell, Kate Warwick and Vaughan Strawbridge.
“The appointment to the Australian and New Zealand companies is intended to seek a restructuring of those businesses and avoid the fate as [sic] the US business, which recently entered Chapter 7”, said an FTI Consulting statement.
A companywide meeting, an all-staff email and FAQ document prepared by the administrators broke the news to staff, ABC reports.
Since its inception in Australia in 1983 by American couple Jenny and Sidney Craig, Jenny Craig expanded to the US in 1985. It has become a household name in a number of other countries, too, with food prep kits, weight loss centres, and coaching.
The administrators intend to continue to trade the Australian and New Zealand Jenny Craig companies while they explore options to restructure them.
“It is unfortunate where an overseas parent company enters bankruptcy and impacts the local business, in particular, where they are operated independently to each other,” said Strawbridge in the FTI statement.
“We are working with the Australian and New Zealand leadership team to trade the businesses with a view to attracting new capital to restructure the Australian and New Zealand companies. Interest has already been received and we will be working with those parties and stakeholders of the business to secure the ongoing business and provide clarity to its loyal and committed staff and customers as soon as possible.”
This is an edited version that first appeared on Smart Company. Read the original piece here.