Jenny Craig Weight Loss Centres in Australia and New Zealand are in voluntary administration.
In the US the Jenny Craig business recently entered Chapter 7 and announced the firm’s closure on its website.
The ANZ companies operate separately from the American business. However, when the US business filed for bankruptcy, and failed to repay a loan, the ANZ directors had to appoint administrators.
The company appointed Vaughan Strawbridge, Kate Warwick, and Joseph Hansell of FTI Consulting as Voluntary Administrators.
FTI Consulting is seeking a restructuring of the businesses.
Jenny Craig ANZ administrators search for capital to restructure
Strawbridge said “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.
“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.”
He said there is already interest in the businesses.
“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,” he said.
A global brand that started in Melbourne
Jenny Craig and her husband Sidney started the business in 1983 in Melbourne, before expanding operations to the US. By 1998 the business was operating across Australia, New Zealand, Canada, the US and Puerto Rico.
Jenny Craig, Inc. has had mixed fortunes over the years. A number of owners have bought and sold the weight loss business over its four decade history. Current owners, global private equity firm H.I.G., acquired the business in 2019.
Franchise firms and providers who have taken voluntary administration and restructured include Jump! Swim Schools and SumoSalad.
