The collapse of a weight loss empire: Jenny Craig goes under in Australia
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It's always sad to see a household name disappear, and such is the case with Jenny Craig Australia, a famous weight loss program.
After weeks of searching for a buyer and restructuring the business, popular weight loss giant Jenny Craig has officially announced that it will be closing its physical stores in Australia, with all staff being made redundant and the company being liquidated.
Jenny Craig, which has been in operation since 1983, was a weight loss giant known for its strict meal programs and person-to-person support. Various celebrities, such as Kirstie Alley and Mariah Carey, were brought on to promote the company.
News of the closure sent shockwaves through the weight loss community and those close to the company.
It hasn’t been that long since Jenny Craig Australia announced it would continue its operations while administrators investigated options for restructuring the business.
This decision came after it was announced that its US counterpart would close its doors for good.
In a document shared with the public, it said: ‘While we had to issue WARN Notices specifically for sites where we had more than 50 people potentially impacted, this will likely impact all employees in some manner.’ You can read more about this story here.
FTI Consulting, one of the Administrators of Jenny Craig, tried to find a buyer for the physical stores and its employees. However, in spite of their best efforts, they were unable to do so.
In a statement shared with the public, it said: ‘The Administrators sought to sell the Australian and New Zealand operations of the Jenny Craig Group as a going concern with the intent of preserving as many jobs as possible and limiting the losses for creditors and sought offers from interested bidders.’
‘The bidding and sale process resulted in 15 interested parties participating, four of which submitted non-binding indicative offers,’ it continued.
‘Despite best efforts, the Administrators were unable to find a buyer for the physical stores and employees of the Australian and New Zealand business.’
Adding to their sentiment: ‘The Administrators have today advised all of the employees in Australia New Zealand that a sale of the business with the stores continuing to trade and staff continuing their employment has not been achievable.’
‘This has resulted in a decision to immediately cease trading from stores and employees being made redundant, which is an unfortunate outcome and one which the Administrators had sought to avoid.’
The statement from the administrators also revealed that they have agreed to sell the online capability of the business to Eucalyptus, a healthcare technology company.
The hope is that this will allow Jenny Craig's services to continue online, providing weight loss solutions to customers.
Last month, a spokeswoman for the company confirmed that the Australian and New Zealand operations of Jenny Craig are completely independent of the US and would continue as usual. She reassured customers that the company's top priority is providing the best possible service and supporting their clients. More details about this statement can be found here.
The loss of the physical Jenny Craig stores may come as a shock to many, and it is certainly a difficult time for Jenny Craig and the entire weight loss community in Australia and New Zealand.
However, it’s important to remember that there are still a large number of weight-loss programs, support groups and online services that can help you with your diet and lifestyle goals.
Have you tried Jenny Craig’s services before? How did it go? Also, if you have any other advice to share about planning your own weight loss journey, please let us know in the comments below.
After weeks of searching for a buyer and restructuring the business, popular weight loss giant Jenny Craig has officially announced that it will be closing its physical stores in Australia, with all staff being made redundant and the company being liquidated.
Jenny Craig, which has been in operation since 1983, was a weight loss giant known for its strict meal programs and person-to-person support. Various celebrities, such as Kirstie Alley and Mariah Carey, were brought on to promote the company.
News of the closure sent shockwaves through the weight loss community and those close to the company.
A statement made by one of the administrators of Jenny Craig confirmed that the company had made all staff redundant. Credit: Anna Tarazevich/Pexels
It hasn’t been that long since Jenny Craig Australia announced it would continue its operations while administrators investigated options for restructuring the business.
This decision came after it was announced that its US counterpart would close its doors for good.
In a document shared with the public, it said: ‘While we had to issue WARN Notices specifically for sites where we had more than 50 people potentially impacted, this will likely impact all employees in some manner.’ You can read more about this story here.
FTI Consulting, one of the Administrators of Jenny Craig, tried to find a buyer for the physical stores and its employees. However, in spite of their best efforts, they were unable to do so.
In a statement shared with the public, it said: ‘The Administrators sought to sell the Australian and New Zealand operations of the Jenny Craig Group as a going concern with the intent of preserving as many jobs as possible and limiting the losses for creditors and sought offers from interested bidders.’
Administrators said it had been unsuccessful in finding a buyer. Credit: Karolina Grabowska/Pexels
‘The bidding and sale process resulted in 15 interested parties participating, four of which submitted non-binding indicative offers,’ it continued.
‘Despite best efforts, the Administrators were unable to find a buyer for the physical stores and employees of the Australian and New Zealand business.’
Adding to their sentiment: ‘The Administrators have today advised all of the employees in Australia New Zealand that a sale of the business with the stores continuing to trade and staff continuing their employment has not been achievable.’
‘This has resulted in a decision to immediately cease trading from stores and employees being made redundant, which is an unfortunate outcome and one which the Administrators had sought to avoid.’
The statement from the administrators also revealed that they have agreed to sell the online capability of the business to Eucalyptus, a healthcare technology company.
The hope is that this will allow Jenny Craig's services to continue online, providing weight loss solutions to customers.
Last month, a spokeswoman for the company confirmed that the Australian and New Zealand operations of Jenny Craig are completely independent of the US and would continue as usual. She reassured customers that the company's top priority is providing the best possible service and supporting their clients. More details about this statement can be found here.
The loss of the physical Jenny Craig stores may come as a shock to many, and it is certainly a difficult time for Jenny Craig and the entire weight loss community in Australia and New Zealand.
However, it’s important to remember that there are still a large number of weight-loss programs, support groups and online services that can help you with your diet and lifestyle goals.
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