Telehealth startup Eucalyptus acquires Jenny Craig’s online business as its stores close, staff lose jobs

The administrators of collapsed weight loss service Jenny Craig have failed to find a buyer for its physical operations in Australia and New Zealand, but have brokered the sale of its online services to digital health startup Eucalyptus.

Jenny Craig’s local operation fell into voluntary administration last month, days after its American namesake company filed for bankruptcy.

On Wednesday, joint administrators Vaughan Strawbridge, Kate Warwick and Joseph Hansell, of FTI Consulting, said 15 parties expressed interest in Jenny Craig as a going concern, including four parties that submitted non-binding indicative offers.

But their attempts to lock down a buyer for the brand’s local operations have proven fruitless, the administrators said.

“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 said.

The administrators are now set to recommend liquidation at a meeting of creditors on June 14.

While dozens of Jenny Craig coaching centres are now set to close nationwide, Australian startup Eucalyptus has acquired the online portion of the business.

Eucalyptus “will continue to offer online weight loss solutions to customers,” the administrators said.

The company already operates Juniper, a telehealth brand offering “dietitian-led health coaching and support” and meal supplement shakes.

Juniper recently launched into the weight loss injectables market, offering access to doctor-prescribed medications through online assessments.

Eucalyptus also operates Kin, a digital brand focused on women’s fertility care and reproductive health, and Pilot, a men’s health brand, which also offers weight loss services.

Tim Doyle, founder of Eucalyptus, said he was glad to help the “iconic” brand continue in Australia.

“The company was a pioneer in helping people manage their weight through personalised weight loss programs,” he said in a statement Wednesday afternoon.

“This underpins the modern approach to weightloss that we take through our brands such as Juniper.”

The acquisition is likely to expose Jenny Craig’s traditional audience to Eucalyptus’ prescription offerings, helping weight loss injectables surge further into the mainstream, even as Australian medical regulators keep a close eye on how those products are advertised online.

“What Jenny Craig has done in nutrition is a natural complement to what we have done with Juniper in technology, health coaching and medical advice,” Doyle said.

“Combining the two services will further help patients lose weight and achieve healthy lifestyles.”