Emeryville, California, May 15 - Jamba Juice, the leading blender of fruit and other naturally healthy ingredients, today announced that it is reorganizing its support functions and closing several underperforming stores.
The reorganization will result in the elimination of approximately 53 positions in Jamba’s support functions. These actions are part of an overall effort to reduce operating costs in light of, among other things, the Company’s decision to moderate new Company store growth in fiscal 2008. The Company believes these efforts will help position the Company to best execute its strategy to simplify healthy living. The company expects to incur a pre-tax restructuring charge in fiscal second quarter of approximately $750 thousand for the reorganization of the support functions.
In connection with reducing operating costs, the Company plans to close 10 underperforming Company-owned stores in 2008 and terminate 7 signed leases for un-built stores. At this time, the Company is unable to determine an estimated range with regards to the expected charges related to the closures and lease terminations. Jamba is reducing its guidance to 35-40 new company-owned stores in 2008.
"Jamba’s strategy to transform to a healthy living company is not changing," said Paul Clayton, Jamba’s ceo. "We are reorganizing our support functions and slowing down our growth of new company stores in order to focus our efforts on optimizing the performance of our existing stores."
"I would like to thank all impacted team members for their contributions to Jamba’s performance and unique culture," continued Mr. Clayton. "Their hard work has helped to provide Jamba with a solid foundation for future success."
About Jamba, Inc.
Jamba, Inc. (NASDAQ:JMBA; NASDAQ:JMBAU; NASDAQ:JMBAW) is a holding company and through its wholly-owned subsidiary, Jamba Juice Company, owns and franchises JAMBA JUICE® stores. JAMBA JUICE is the leading blender of fruit and other naturally healthy ingredients. Founded in 1990, Jamba strives to inspire and simplify healthy living for its customers and employees. As of April 22, 2008, JAMBA JUICE had 726 stores, of which 515 were company-owned and operated.