Weight loss company Jenny Craig Australia and New Zealand has collapsed into voluntary administration, following the bankruptcy of its US parent company.
The announcement was made by administrators KPMG on Monday, who confirmed that all 72 Jenny Craig clinics across Australia and New Zealand have been affected by the collapse.
The move comes after Jenny Craig’s US parent company, Curves International, filed for Chapter 11 bankruptcy in the United States earlier this year. The Australian and New Zealand branches of the company have struggled in recent years, with declining sales and increasing competition in the weight loss industry.
KPMG will now work with the company’s management team to assess the financial position of Jenny Craig Australia and New Zealand, and explore options for its future. This could include a restructure, a sale to a new owner, or even the closure of some or all of its clinics.
In a statement, KPMG’s Restructuring Services Partner Brendan Richards said, “We will be working closely with the management team to assess the financial position of the company and explore all available options to determine the best path forward for the business, employees, and stakeholders.”
Jenny Craig was founded in Australia in 1983 and quickly became a popular weight loss program, offering customized meal plans and personal coaching to help clients achieve their weight loss goals. However, in recent years, the company has faced stiff competition from other weight loss programs, as well as changing consumer preferences for healthier and more sustainable lifestyles.
The collapse of Jenny Craig Australia and New Zealand is likely to have significant implications for the weight loss industry in the region, as well as for the company’s employees and customers. KPMG has assured employees that they will be paid their full entitlements during the administration process.
- Published By Team Australia News