Jamba Inc. announced the following changes to its senior management team:
•Steven R. Berrard, the Company’s chairman of the board, has assumed the role of interim CEO and president of the company, replacing Paul E. Clayton, who has resigned as an officer and as a member of the board of directors;
•Karen Luey, vice president, controller, and principal accounting officer of the Company, has assumed the role of interim CFO of the Company, replacing Donald D. Breen, who has resigned to pursue another opportunity, but will provide transition assistance to Ms. Luey in assuming her new responsibilities.
Both of these changes are effective immediately.
The Company has retained an executive search firm and will begin a nationwide search for replacements for the CEO/president and CFO positions.
”I have agreed to assume the responsibilities of chief executive officer and president on an interim basis at the request of the board of directors, who determined that, in consideration of my knowledge of the Company and business background with other consumer turnaround situations, that I would be the most appropriate person to lead the Company on an interim basis, given the challenging environment the Company faces,” says Steven Berrard. Continuing, Mr. Berrard notes that, “Notwithstanding these tough times, the Board remains steadfast in its belief in the future of Jamba Inc. and is fully committed to helping the Company and its leadership team realize its full potential for the benefit of our stockholders, as well as our team members, franchisees, and many other business partners. I would like to personally thank Paul Clayton for eight years of devoted service to building the Jamba brand.”
Mr. Berrard led the Company’s earlier acquisition of Jamba Juice Company in 2006 and previously served as CEO of the Company prior to the acquisition. Mr. Berrard was the former president and CEO of Blockbuster Entertainment Group, the world’s largest video store operator, member of the board of directors of Viacom Inc. and co-founder and co-CEO of AutoNation Inc., the nation’s leading automotive retail company.
Jamba hosted a conference call on Wednesday to discuss the management changes at 6:00 p.m. ET. A replay will be available at 9:00 p.m. ET and can be accessed by dialing (888) 203-1112 or (719) 457-0820 for international callers; the passcode is 7818243. The replay will be available until August 20, 2008.
