Weight loss giant Jenny Craig will immediately cease trading from stores across Australia with employees to be made redundant after the company failed to sell its Australian and New Zealand operations of the brand.
FTI Consulting took the reins of the weight management service’s Australian and New Zealand operations last month after they slipped into voluntary administration.
Days before, the Melbourne-founded business filed for bankruptcy in the US.
Administrators Vaughan Strawbridge, Kate Warwick and Joseph Hansell sought to sell the operations “with the intent of preserving as many jobs as possible” and limiting losses for creditors by seeking offers from interested bidders.
“Despite best efforts, the administrators were unable to find a buyer for the physical stores and employees of the Australian and New Zealand business,” said a statement issued by FTI Consulting on Wednesday.
Administrators advised all employees in Australia and New Zealand that a sale of the business, with the 91 stores continuing to trade and staff continuing their employment, was not achievable.
“This has resulted in a decision to immediately cease trading from stores and employees being made redundant,” the statement added.
FTI Consulting described the decision as an “unfortunate outcome” and one which the administrators “had sought to avoid”.
There were reportedly 15 interested parties involved in the bidding process, four of which submitted non-binding indicative offers.
Last month Mr Strawbridge said the brand’s management team were working to find a new owner and a number of parties were “interested in taking the businesses forward”.
Jenny Craig was founded in Melbourne in 1983 and grew to become a household name as one of the biggest weight management companies in the world.
It has about 600 centres globally with more than 500 locations in North America.
Jenny Craig’s main services consist of one-on-one personalised support with nutrition and lifestyle planning.
Various celebrities have featured as ambassadors over the years including singer Mariah Carey and former Spice Girl Melanie Brown, known as Mel B.
Locally, comedian Magda Szubanski and the late Barry Humphries and his alter ego Dame Edna Everage were also ambassadors.
Private equity investment firm HIG Capital bought Jenny Craig in 2019 for an undisclosed sum.
The next meeting of creditors for the Australian and New Zealand companies of the Jenny Craig Group will be held on June 14.
Administrators have recommended the companies be placed into liquidation but agreed to sell the online capability of the business to Eucalyptus, a healthcare technology company, which will continue to offer online weight loss solutions to customers.
– AAP
