Jenny Craig Australia And New Zealand Enters Voluntary Administration

Following US business collapse

Article heading image for Jenny Craig Australia And New Zealand Enters Voluntary Administration

AAP: Diego Fedele

Voluntary administrators have been appointed to Jenny Craig Australia and New Zealand, despite the business saying its operations wouldn't be affected after its United States business filed for bankruptancy.

A statement released on Tuesday confirmed FTI Consulting's Vaughan Strawbridge, Kate Warwick and Joseph Hansell have been appointed.

Jenny Craig Australia will continue its operations while administrators investigate options for restructuring the business.

FTI Consulting said management of the business appointed administrators after the US business filed for bankruptcy.

"Despite undertakings to do so, [this] has resulted in the directors of the Australian and New Zealand companies needing to appoint voluntary administrator," the FTI Consulting statement read.

In emails seen by the ABC, employees were told the business had been placed into voluntary administration on Tuesday. A "frequently asked questions" document, also seen by the ABC said :the appointment to the Australian and New Zealand companies is intended to seek a restructuring of the those businesses and avoid the same fate as the US business".

Mr Strawbridge said the Australia and New Zealand business going into voluntary administration was "unfortunate".

"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 a statement.

"Interest has already been received and we will be working with those parties and stakeholders of the business to secure the ongoing business and provide clarity to its loyal and committed staff and customers as soon as possible."

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Tricia Mifsud

9 May 2023

Article by:

Tricia Mifsud

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