Meal-solution suppliers Vesco Foods and Lite n’ Easy are expected to be among the groups lining up for the Australia and NZ operations of weight-loss firm Jenny Craig.
A coming sale of the business through FTI Consulting is understood to have generated interest, with both private equity firms and other industry operators taking a look. These include groups such as Weight Watchers and prepared-meals providers such as Lite n’ Easy and Vesco, which is owned by Asian private equity firm PAG.
Turnaround funds such as Anchorage Capital Partners and Allegro Funds are also typically around such situations.
The company collapsed in recent weeks after the US arm of Jenny Craig was unable to pay a loan. The business was started by Jenny Craig herself in Melbourne and the Australian and NZ operations are understood to be profitable.
They were placed into voluntary administration solely due to the problems with the US arm, sources say. The packaged diet-meals provider is of significant scale in the Australia and Kiwi market, with 300 to 400 employees with network and distribution value.
FTI Consulting is working as the voluntary administrator on the business, along with law firm Clayton Utz.
The US operations of the business, which operate separately, are currently in Chapter 7 bankruptcy.
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