Office Depot to close 112 stores

Necro · 01-09-2009, 04:01 AM

Quote:

Office Depot Inc. will close about 9 percent of its North American stores over the next three months and open fewer locations next year in an effort to cut costs, the office supply chain said Wednesday. None of the closing stores are located in South Florida, a spokesman said.

The plan to shutter 112 stores will reduce the chain's base to 1,163. It plans to close 45 stores in the Central U.S., 40 in the Northeast and Canada, 19 in the West and eight in the South.Office Depot also will close six of its 33 North American distribution facilities.

Meanwhile, the Boca Raton-based company said it plans to shut another 14 stores next year while opening just 20 new sites, half of what it planned.

"Like many other companies, Office Depot is faced with conducting business in an extremely challenging economic environment," said Brian Levine, spokesman for Office Depot. "The stores being closed are either under performing or no longer a strategic fit for the company."

Office Depot will take related charges of $270 million to $300 million in 2008 and 2009. The struggling retailer considered store closings in October, when it reported a third-quarter loss due to slumping sales as consumers and small businesses cut back spending.

Office Depot shares, which have tumbled more than 82 percent since the beginning of the year, were unchanged in pre-market trading Wednesday at $2.43.

This is about a month old, but I hadn't heard this. Every one I've ever been in is pretty bland.

James Deuce · 01-09-2009, 08:35 AM

How is Office Max not closing some either? I used to work there a long time ago and it was always dead as hell. When I go there now there is usually only like 4 people in the store.