)
Announced today, collapsed weight-loss giant Jenny Craig will cease operations in Australia and New Zealand after administrators failed to secure a buyer for the brand’s physical stores.
FTI Consulting, who were appointed as administrators for the company about a month ago, announced Jenny Craig Australia and New Zealand would immediately cease trading from stores, with employees to be made redundant.
Voluntary administrators Vaughan Strawbridge, Kate Warwick and Joseph Hansell of FTI Consulting have recommended that company be placed into liquidation, with a second meeting of creditors to take place on 14 June.
The administrators initially sought to sell the operations as a going concern with the intent of preserving jobs and limiting the loss for creditors but came up short despite the sales process resulting in 15 interested parties and four non-binding indicative offers.
“This has resulted in a decision to immediately cease trading from stores and employees being made redundant, which is an unfortunate outcome and one which the Administrators had sought to avoid,” FTI Consulting said in a statement.
“The administrators have today advised all of the employees in Australia New Zealand that a sale of the business with the stores continuing to trade and staff continuing their employment has not been achievable.”
On the upside, administrators have agreed to sell the online arm of the business to Sydney-based healthcare tech company Eucalyptus, which will continue to offer online weight loss solutions to customers.
The news of Jenny Craig’s collapse Down Under comes about a month after the company’s US and Canadian branches were closed.
The US company declared bankruptcy on 5 May, citing cash flow problems as it sought a new buyer. As part of the collapse, customers’ auto-delivered subscriptions were cancelled while coaching sessions and merchandise sales ceased.
The brand was founded in 1983 by Jenny Craig and her husband Sidney Craig, and at its peak was operating in 114 countries before undergoing an IPO in 1991.
)
