EMERYVILLE Calif. Jamba Inc. said it is selling nine corporate Jamba Juice units to a franchisee in Oregon as part of a refranchising initiative it announced earlier this year.
Jamba said late Wednesday that The Cinnamon Bums Inc., operator of nine Jamba Juice units throughout the Pacific Northwest, has agreed to buy another nine stores in Oregon. The two principals in the franchise operation, John Whittaker and Steve Foltz, also committed to build three new Jamba Juice units in the state.
In May, Jamba said it plans to sell 150 corporate locations within the next 12 to 18 months, mostly outside the brand’s core market of California, with the goal of expanding the 732-unit chain’s presence with new development agreements.
The agreement in Oregon brings the total of refranchised units so far to 19. In March, the company sold 10 stores to an existing franchisee in Arizona.
Jamba has struggled with falling sales at its smoothie chain, which has most of its units in California, a state that has been hard hit by rising unemployment and an unstable housing market. For the first quarter ended April 21, the company reported a net loss of $10.2 million, compared with a loss of $6.4 million the year-ago quarter. Same-store sales at corporate units fell 13.8 percent in the quarter.
Earlier this year, Jamba announced aturnaround plan that included the refranchising plan, new licensing opportunities and the rollout of a new food menu, which is now available in about 200 California locations.
The company in June also announced a $35 million stock sale that included a $19.55 million investment from New York-based private-equity firm Mistral Equity Partners and another $15.45 million from the Serruya family, founders of the Canada-based Yogen Fruz frozen yogurt sale.
Contact Lisa Jennings at [email protected].
