Office Depot to close at least 400 stores

Office Depot to close at least 400 stores

Credit: Getty Images

SAN FRANCISCO, CA - FEBRUARY 19: A customer walks out of an Office Depot store on February 19, 2013 in San Francisco, California. Shares for Office Max and Office Depot surged today after it was reported that the two office product retailers were in advanced merger talks and a deal could be struck as early as this week. (Photo by Justin Sullivan/Getty Images)

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wwltv.com

Posted on May 6, 2014 at 9:47 AM

Edward C. Baig, USA TODAY

Office Depot said it plans to close at least 400 stores by the end of 2016 that will result in $75 million annual savings.

The company's merger with OfficeMax resulted in an overlap of retail locations that needed to be consolidated, the company said.

Office Depot expects to close 150 stores this year, mostly in the fourth quarter, with the remaining closures expected to occur by the end of 2016. Office Depot Chairman and CEO Roland Smith said the move will start contributing to earnings beginning next year.

"One of our 2014 critical priorities is to improve our store footprint in North America to best meet customer demand, ensure we are appropriately positioned in the markets we serve, and align with our unique selling proposition which we are developing this year," Smith said in a statement released by the company.

Office Depot reported an operating loss of $79 million in the first quarter and a net loss attributable to common stockholders of $109 million, or $0.21 per share.

The company also said Tuesday that it's still trying to determine expected working capital savings and costs related to the store closings.

Office Depot currently has more than 2,000 stores around the world. Shares of the Boca Raton climbed 8.63% Tuesday in premarket trading.

Contributing: The Associated Press

 

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