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Jenny Craig’s Australian business calls in administrators

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Weight loss company Jenny Craig’s Australian and New Zealand operations have officially folded, just five days after reassuring the public that they were “currently [continuing] to operate and support our clients”.

FTI Consulting’s Vaughan Strawbridge, Kate Warwick and Joseph Hansell have been appointed voluntary administrators of the Melbourne-founded business after the US parent company officially filed for bankruptcy on Friday.

Jenny Craig Australia will continue to trade even as the administrators investigate options for restructuring the business.The Australian management team was reluctant to appoint administrators, but was left with no choice, said Strawbridge. “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,” Strawbridge said in a 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.

 

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