An employee of Jenny Craig in New Zealand says she feels the company has blindsided its staff, as it shuts down domestically.
Mandy Humphrey-Towler said she'd found out the company was going under through Facebook. She had worked for the company for four-and-a-half years and said she felt "shock and utter disbelief".
"(I) then checked my email to find the correspondence from head office and the administrators," she said.
Humphrey-Towler feels she's been blindsided by upper management — told there were potential buyers, only to find she had been made redundant.
"We had been assured the entire time we were in administration, that everything was fine, and we had nothing to worry about."
She's also worried about clients who were also reassured.
"I feel like I lied to them. I feel awful that they all get dropped like a hot rock."
Many customers are yet to receive communication about what happens now that the company has gone bust.
New Zealand customer Odette Thornton told 1News the news had left her "shocked".
"I'm feeling a bit worried about how to transition to another programme," she said.
Thornton had previously used Jenny Craig for a five-year period with success and restarted several months ago.
"I have never had a bad experience with the consultants. The food is nice."
However, Thornton and many customers are yet to hear what the news will mean for them, and potential refunds.
"We have had no communication from Jenny Craig at all yet."
Staff were told two days ago that the company is going to be placed into liquidation, with stores to shut immediately and staff to be made redundant.
Many customers found out through media reports that the company was shutting down.
1News has confirmed there were 71 employees of the Jenny Craig NZ business when it went into administration.
“I'm also worried about the staff,” Thornton said.
“My consultant is away for a month and has lost her job in the meantime.”
Administrators appointed last month
In a statement on Wednesday, a spokesperson from FTI Consulting said it was appointed as Voluntary Administrators of the Australian and New Zealand operations of the Jenny Craig Group on May 9, 2023.
The spokesperson said today that employees were made aware on June 7 they were being made redundant, and "all staff were emailed".
"Despite best efforts, the Administrators were unable to find a buyer for the physical stores and employees of the Australian and New Zealand business. The Administrators have today advised all of the employees in Australia New Zealand that a sale of the business with the stores continuing to trade and staff continuing their employment has not been achievable.
"This has resulted in a decision to immediately cease trading from stores and employees being made redundant, which is an unfortunate outcome and one which the Administrators had sought to avoid."
The Administrators have agreed to sell the online capability of the business to Eucalyptus, a healthcare technology company, which will continue to offer online weight loss solutions to customers.
The second meeting of creditors for the Australian and New Zealand companies of the Jenny Craig Group are being held on Wednesday, June 14, where the recommendation of the Administrators is for the companies to be placed into liquidation.
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