Jenny Craig's Australian and New Zealand business enters voluntary administration

In the wake of its USA-based operations filing for bankruptcy earlier this month, diet and weight management company Jenny Craig's Australian and New Zealand business has this week entered voluntary administration.

Tuesday’s announcement followed a company spokesperson having earlier stated that the Australasian business, which is separate to those that operate in the USA, would continue despite the North American company’s challenges.

Effective from Tuesday, FTI Consulting has been appointed as voluntary administrators of the business, led by Vaughan Strawbridge, Kate Warwick and Joseph Hansell.

A document circulated to local employees advised "the appointment to the Australian and New Zealand companies is intended to seek a restructuring of the business and avoid the same fate as the US business”.

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Founded in Melbourne in 1983, the business expanded in North America and was later purchased by private investors in the early 2000s before going through a series of ownerships.

The decline of the business has been suggested as being due a change in how people engage in weight management.

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

The statement advised “despite undertakings to do so, (this) has resulted in the directors of the Australian and New Zealand companies needing to appoint voluntary administrator.

Jenny Craig operates more than 80 ‘weight management’ centres globally and employs hundreds of staff.

Image: A Jenny Craig outlet in Oakville, Ontario, Canada. Credit: Shutterstock.