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Jenny Craig Australia enters voluntary administration after US business files for bankruptcy

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Administrators have been appointed to oversee operations for Jenny Craig Australia and New Zealand less than a week after the US company filed for bankruptcy.

In a statement, FTI Consulting said management of the local business appointed administrators after the US business filed for bankruptcy and failed to repay a loan.

Jenny Craig operates more than 80 "weight management" centres globally and employs hundreds of staff. "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," he said in a statement."We are working with the Australian and New Zealand leadership team to trade the business with a view to attracting new capital to restructure the Australian and New Zealand companies.

Last week the US business announced it would shut its doors after it ran out of money while searching for a buyer for a fortnight.Jenny Craig was first founded in Melbourne by American couple Jenny and Sidney Craig in 1983, before expanding to the US in 1985.

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