Weight loss program Jenny Craig will enter voluntary administration in Australia and New Zealand after it filed for bankruptcy in the U.S. last week.
Voluntary administration is when a person or group is appointed by a company to steer them away from serious financial trouble.
Jenny Craig was founded in Melbourne in 1983. It offers nutrition programs, personal coaches, and recipes to help customers lose weight.
It ran promotions with Mariah Carey, Magda Szubanski, and the late Barry Humphries (as Dame Edna Everage).
Is Jenny Craig bankrupt?
Jenny Craig’s U.S. and Canada operations began winding down last week.
This included ending all of its coaching sessions, food orders, merchandise sales, and ending customer subscriptions.
Jenny Craig has since filed for bankruptcy in the U.S., and will now begin the process of selling its assets to repay its debt.
Then, the voluntary administration
Jenny Craig’s Australia and New Zealand branches reassured customers of their future following the closing of its North American outlets last week.
They said they were operating “independently” from these stores, and that local operations would be “unaffected” by the closures.
However, an update posted on Tuesday said they had “no option” but to go into voluntary administration to also avoid declaring bankruptcy.
What happens next?
Jenny Craig’s services will still be available for Australian and New Zealand customers while the company is in voluntary administration.
Voluntary administrators have already been named. It’s believed they will seek to restructure the business and find new owners to inject more money into the business.