Jenny Craig ANZ was unable to find a buyer for its physical operations, however, its online operations have been sold.
Last month, the American chapter of weightloss brand Jenny Craig closed down and filed for chapter 7 bankruptcy. With a reported $US250 million of debt, Jenny Craig closed 500 US and Canada bricks and mortar centres and cease online operations due to its inability to secure additional financing. The saga continued with the ANZ chapter, which operates separately from its US counterpart, falling into voluntary administration last month to get its affairs in order and avoid the fate as the US business.
Vaughan Strawbridge and Joseph Hansell of FTI Consulting were appointed as Voluntary Administrators Jenny Craig Weight Loss Centres (NZ) Limited (the Australian and New Zealand operations of the Jenny Craig Group) on 9 May 2023. Despite receiving fifteen interested parties participating, four of which submitted non-binding indicative offers, the administrators were unable to secure new capital to restructure and continue operations and accordingly announced Jenny Craig Weight Loss Centres (NZ) Limited is to be placed into liquidation.
Jenny Craig’s 73 physical stores across ANZ ceased trading yesterday with employees being made redundant. The Guardian reports that Jenny Craig employed approximately 306 staff in Australia and 71 in New Zealand. FTI Consulting stated this is an “unfortunate outcome and one which the Administrators had sought to avoid.”
Australian healthcare tech startup Eucalyptus has purchased the online capability of the business and will continue to offer online weight loss solutions to customers. Started in 2019, Eucalyptus raised a total of $32.8 million in funding from investors Blackbird Ventures, Woolworth’s W23, and AirTree Ventures in its mission to provide online prescriptions, health advice, and health products. The Sydney based company boasts four brands currently, its pilot men’s health brand Pilot, contraception and reproductive health brand Kin – which provides a contraceptive pill prescription service, skincare brand Software which combines tech and expert advice to provide custom skincare routines and advice, and Juniper, a Jenny Craig-esque weightloss program that provides medicinal support and coaching.
Creditors will be provided with a further update of the sale at the second meeting of creditors on June 14.
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