Office Depot Shuttering Up To 400 Stores
May 7, 2014
Office Depot said it completed a preliminary analysis of its U.S. retail store portfolio and anticipates closing at least 400 stores by the end of 2016.
Approximately 150 stores will be closed in 2014, with the majority of those set to go dark in the fourth quarter.
The business supply retailer said it expects at least $75 million in annual run-rate synergies by the end of 2016 from the store closings, which are expected to be accretive to earnings beginning in 2015.
Office Depot cautioned that more closings could be coming as the company continues to finalize its real estate plans. It is also working to determine expected savings and costs related to the store closures.
For the remainder of 2014, Office Depot continues to expect that market trends will remain challenging across the company’s product lines and distribution channels, and therefore continues to anticipate total company sales in 2014 will be lower than 2013 combined pro forma sales.