Jenny Craig ‘continues to operate’ in Australia despite looming US bankruptcy

Weight-loss company Jenny Craig has played down concerns that its local operations will fold after news overnight that its US parent company is closing its doors and will terminate jobs by the end of the week.

In a statement, Jenny Craig said its Australia and New Zealand operations were “currently [continuing] to operate and support our clients” despite the US business “intending to file for bankruptcy”.

“While this is unfortunate news for our colleagues in the USA, the Jenny Craig operations here in Australia and New Zealand do act independently,” the statement said.

Jenny Craig was founded in Melbourne in 1983 by Jenny Craig and her husband, Sidney Craig, as a weight management and nutrition company that provides weight-loss coaching with frozen meals. The pair set up operations in the US two years later and became a household name, with more than 600 centres across the world, including Australia, New Zealand and the US.

Over the decades, the company has changed hands a number of times. Miami-headquartered private equity firm HIG Capital acquired the Jenny Craig business, including Australian operations, in 2019, but has reportedly been pursuing a sale since early March this year and had plans to move to an online model, according to Bloomberg.

Documents lodged to the Australian Securities and Investments Commission show the local business has been in trouble for at least two years.

Jenny Craig Australia’s most recent annual report showed net profits after income tax was less than $1.4 million for the financial year ending December 31, 2021, a sharp drop from the $6.9 million posted the year prior. Net cash from operating activities also reduced by 90 per cent, from $11.9 million to $1.2 million.

Auditor BDO, which compiled the report, warned that the company’s future was in doubt.