News

Jamba to close underperforming stores

May 15, 2008

EMERYVILLE, Calif. — Smoothie shop Jamba Juice has 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. The moves are part of an effort to reduce operating costs in light of, among other things, the company's decision to moderate new store growth in fiscal 2008.

Jamba expects to incur a pre-tax restructuring charge in the fiscal second quarter of approximately $750,000 for the reorganization of the support functions.

The company also plans to close 10 underperforming company-owned stores in 2008 and terminate seven signed leases for un-built stores. No estimate of the expected charges related to the closures and lease terminations is currently available.

Jamba is reducing its guidance to 35 to 40 new company-owned stores in 2008.