Jenny Craig centres to close, all staff made redundant
The Jenny Craig Australia and New Zealand business is to cease operations with all staff made redundant after its administrators failed to secure a buyer for the physical stores and employees.
Voluntary administrators appointed on May 9 – Vaughan Strawbridge, Kate Warwick and Joseph Hansell of FTI Consulting – recommended the company be placed into liquidation.
Meanwhile, Jenny Craig’s online business has been sold to healthcare technology company Eucalyptus, which will continue to offer online weight loss solutions to customers. Eucalyptus is a five-year-old startup backed by Woolworths Group which operates men’s health brand Pilot, women’s fertility and telehealth service Kin, skincare brand Software and sexual wellness company Normal.
“[The decision] is an unfortunate outcome and one which the administrators had sought to avoid,” the statement said.
The bidding and sale process last month, which aimed to “preserve as many jobs as possible and limit the losses for creditors”, resulted in 15 interested parties participating, four of which submitted non-binding indicative offers.
“Despite best efforts, the administrators were unable to find a buyer for the physical stores and employees of the Australian and New Zealand business.”
Jenny Craig’s Australian and New Zealand subsidiary was placed in administration after its US parent company entered Chapter 7 proceedings and filed for bankruptcy, unable to repay a loan last month.
Founded by Jenny Craig and her husband Sidney in 1983, the company was one of the world’s most well-known weight management enterprises.
The post Jenny Craig centres to close, all staff made redundant appeared first on Inside Retail.