Victory Park Capital Advisors, a Chicago-based alternative investment firm, were the sole investors. The transaction was completed on September 11, 2008 as Victory Park Capital purchased $25 million two-year senior secured term notes from Jamba, Inc.
Steven R. Berrard, President and CEO of Jamba, commented on the transaction, “We are pleased to have completed this financing which provides us greater financial flexibility to execute our business plan."
Jamba has endured a relatively tough year after achieving solid sales growth and stock market success in recent years. It announced changes to its senior management team last month on the heels of shares falling to an all-time low and the announcement of at least 20 store closures. Now, as it secures financing, analysts wonder if Jamba’s long-term future is in doubt. Jamba has at least temporarily quelled those concerns, as it posted a 10% quarterly revenue gain for the fiscal second quarter ended July 15, 2008.