Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Business News

Office Depot closing at least 400 stores after merger

(Business News) Office Depot has officially merged with OfficeMax, and will be closing at least 400 stores to become more efficient.

office depot closing bebe

office depot closing

The new Office Depot / OfficeMax merger

Due to the recent Office Depot/OfficeMax merger, Office Depot is planning to close at least 400 of its stores; stating that the merger created an overlap of retail locations that need to be consolidated. Office Depot and OfficeMax reached a $1.2 billion merger deal this past November. The company had a total of 1,900 stores at the end of this first quarter, so this would close nearly one quarter of their locations.

Office Depot Chairman and CEO, Roland Smith, stated, “the overlapping retail footprint resulting from the merger provides us with a unique opportunity to consolidate and optimize our store portfolio, while maintaining the retail presence necessary to serve our customers.”

bar
The retail chain has already closed fourteen stores, all in the first quarter. 150 more of these store closures will happen this year, expected to commence in the fourth quarter. The remaining closures are expected to happen by the end of 2016. By closing these stores, they expect to see a $75 million annual savings by the end of 2016.

Quarterly filings show a loss

The company also reported its first-quarter financial results, which includes results from OfficeMax. Office Depot lost $109 million, according to the latest report; compared to the previous year’s $17 million, the merger already seems costly. However, revenue climbed from $2.72 billion the previous year, to $4.35 billion this year. The company also raised its 2014 outlook from $140 million to $160 million, so overall; they anticipate the merger to be successful.

Office Depot has not yet quantified the number of jobs that will be affected by the store closures, it hopes to place its best talent, at the stores slated to close, into new roles, wherever possible. If you are near duplicate locations however, it may be wise to begin researching other employment opportunities.

Advertisement. Scroll to continue reading.

Jennifer Walpole is a Senior Staff Writer at The American Genius and holds a Master's degree in English from the University of Oklahoma. She is a science fiction fanatic and enjoys writing way more than she should. She dreams of being a screenwriter and seeing her work on the big screen in Hollywood one day.

Click to comment

Leave a Reply

Your email address will not be published.

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Advertisement

KEEP READING!

Business News

(BUSINESS) The former CEO of Highrise used a fake website to weed out toxic clients. How can you keep problematic customers out of your...

Business Entrepreneur

(ENTREPRENEUR) Acquiring a business can be a key part of future growth, but there are some factors you should consider before signing the deal.

Opinion Editorials

(EDITORIAL) How can you know who your true business friends are? In the cutthroat world of business, can you even have colleagues that you...

Business Marketing

(MARKETING) If you're a business owner and want to learn something...anything...give one (or all) these podcasts a listen.

The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.