| |||||||||||||||||||||||
| |||||||||||||||||||||||
 If you needed a reminder that SPACs can sometimes squeeze investors dry, Jamba Inc., owner of the California-based smoothie chain Jamba Juice Co., is closing 10 underperforming stores, and cutting 53 workers in order to cut $4 million in costs and will restructure. Last month the company set up a $25 million credit facility with Wells Fargo.
The company is one of several special purpose acquisition companies that is a shell of the opportunity investors were hoping for as Vyvyan Tenorio relays in "Shell game":
Returns have fallen for investors in San Francisco beverage maker Jamba Juice Co., which merged with Steven Berrard's Services Acquisition Corp. International for $265 million, and Smart Balance Inc., which Boulder Specialty Brands Inc. acquired for roughly $500 million, both in 2006. As of July 2007, an investor in the Jamba Juice SPAC vehicle would have generated a total return of about 60%, and about 74% in Smart Balance, according to CRT's data. Last month, those numbers looked a lot different: The return on Jamba was minus 64.4% and Smart Balance, 9.3%.After the company made restructuring announcements, Jamba's stocks fell to $2.49. - Maria Woehr Categories Deal Video
    Community
 Elsewhere on The Deal.comDealwatch
The Deal MagazineCorporate Dealmaker
The Deal VideoCategories
Blog roll
Archives
| |||||||||||||||||||||||
|
|
|
|
|
©Copyright 2009, The Deal, LLC. All rights reserved. Please send all technical questions, comments or concerns to the Webmaster.
