Weight lifts from Jenny Craig as buyers eye off a slice

·2-min read
Diego Fedele/AAP PHOTOS

The future looks promising for Jenny Craig as administrators field bids to buy the brand, a consulting firm says.

FTI Consulting last week took the reins of the weight management service's Australian and New Zealand operations after they slipped into voluntary administration.

Days before, the Melbourne-founded business filed for bankruptcy in the US. 

The firm's Vaughan Strawbridge, Kate Warwick and Joseph Hansell were appointed as voluntary administrators and met creditors for the first time on Thursday.

FTI said Jenny Craig still had the backing of its loyal customers and suppliers, who were supporting the business to enable it to keep guiding customers through their weight loss journeys.

The brand's management team continued to trade out of all 91 Australian and New Zealand centres and work to find a new owner was well progressed, FTI said.

"The sale process is well progressed and we are working with a number of parties who are interested in taking the businesses forward," Mr Strawbridge said.

"We are seeking to achieve an outcome quickly, which would provide certainty to our customers and staff about securing the future of the business.

"The Australian and New Zealand companies of the Jenny Craig Group operate independently of the US business and the voluntary administrators continue to work with interested parties with respect to finding a new owner for the businesses here."

Jenny Craig was founded in Melbourne in 1983 and grew to become a household name as one of the biggest weight management companies in the world.

It has about 600 centres globally with more than 500 locations in North America.

Its main services consist of one-on-one personalised support with nutrition and lifestyle planning.

Various celebrities have featured as ambassadors over the years including singer Mariah Carey and former Spice Girl Melanie Brown, known as Mel B.

Locally, comedian Magda Szubanski and the late Barry Humphries and his alter ego Dame Edna Everage were also ambassadors.

Private equity investment firm HIG Capital bought Jenny Craig in 2019 for an undisclosed sum.