Jamba Inc. president, chairman and CEO James White will retire, but will stay in his position until the company finds a successor, White said Thursday.
Jamba’s board has formed a search committee and hired executive search firm The Elliott Group to assist in identifying a potential replacement for White, who has served as CEO of the Emeryville, Calif.-based company for seven years.
“I’ve been privileged to lead this pioneering and innovative company. We have transformed Jamba into a leading healthy, active lifestyle brand that is inspiring and simplifying healthy living in this country and in many countries around the world,” White said in a statement. “I am very proud of my team’s track record in turning the company around, creating a steady stream of innovative smoothies, premium juices and foods, and creating value for our associates, franchisees and shareholders.”
White said he has been thinking about the transition for a while. The timing was influenced by the near completion of the company’s accelerated refranchising initiative.
The Jamba Juice chain is nearly 90-percent franchised. In mid September, the company said it would sell 13 company-owned units in Southern California to franchisees, bringing the total number of refranchised units this year to 163.
Another one or two deals are expected before the end of the year, the company said.
“At this point, after seven years as CEO, I feel it is right for me to move on and for the board to transfer leadership to a new generation,” White said.
The smoothie chain also appointed two independent directors to its board earlier this year, squelching an attempt by activist investors to seek control. The investors were pushing for change, including cost-cutting measures and the move to a more asset-light model with refranchising.
For its second quarter ended June 30, systemwide same-store sales declined 3.9 percent, including a 5.9-percent drop at company-owned locations and a 2.6-decline at franchised units.
The company estimated third-quarter same-store sales growth between 4 percent to 5 percent systemwide. Same-store sales at company-owned units are expected to rise 5 percent to 6 percent for the quarter.
Andrew Heyer, lead independent director of the Jamba Inc. board, thanked White for his leadership and for assembling a talented senior-level management team.
“The knowledge, skills and proven track records of our key executives will ensure that Jamba maintains its operational focus and continues the forward momentum of its refranchising efforts during the interim period,” Heyer said. “This leadership change will not impact our ongoing transition to an asset-light, franchise-focused model, and I am confident that we will continue making progress in our franchise program.”
Contact Lisa Jennings at [email protected].
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