Australian weight loss juggernaut Jenny Craig is set to shut up shop, the business reportedly considering bankruptcy due to its estimated $374 million in debt.
Founded in 1983 by Melbourne-based Americans Jenny and Sidney Craig, the business blew up and quickly expanded to the US in 1985.
In the four decades since, Jenny Craig has attracted millions of people (mostly women), with its healthy meal plans and menus designed by expert dieticians with the goal of shedding kilos for its clients in mind.
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But alas, despite its popularity, Jenny Craig could be shutting up shop for good, a leaked email sent to the US arm of the business revealing mass staff redundancies.
The email informed workers that they would receive a “final paycheck, including [their] full compensation earned through your last day of work and all accrued, unused paid time off.”
Given this, and recent reporting by financial news platform Bloomberg that said the business was searching for a buyer, and considering bankruptcy, things are not looking good!
And now, just one week later, the Australia and New Zealand arm of the branch has collapsed into voluntary administration in the hopes of avoiding the same fate that its US counterpart has.
Despite voluntary administrators being appointed to restructure the Pacific arm of the business, the business will continue as usual in Australia and New Zealand both for clients and staff.
In a statement released earlier this week, one of the administrators – FTI Consulting’s Vaughan Strawbridge – said that he and his team would work closely with leadership within the business to find the best possible outcome for all involved.
“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 the release.
“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.”
When news of the US arm of the business going bankrupt became public, a directive from Jenny Craig Australia and New Zealand was sent to staff making note that each branch of the business was “separate” and acted “independently.”
In a statement also released prior to their own collapse into voluntary administration, Jenny Craig Australia and New Zealand said “Here in Australia and New Zealand we currently continue to operate and support our clients. As always, our priority is to continue providing the best possible service. We thank you for your continued patience and support during this time.
Aussie stars such as comedian Magda Szubankski, Married at First Sight’s Jules Robinson, and Australian Idol’s Casey Donovan have been spokespersons for the brand, joining international stars such as Kirstie Alley, Mariah Carey, and even Mel B!
