Office Depot to Close 112 Stores, Cut 2,200 Jobs

[ensho]

http://www.bloomberg.com/apps/news?pid=20601087&sid=aqtyg8nhZ3.I&refer=home


Office Depot Inc. said it will close almost 10 percent of its North American stores and cut 2,200 jobs as the U.S. recession saps demand for business furniture, sending the shares up 9.1 percent.

The world’s second-largest office-supplies retailer said today in a filing that it will shutter 112 underperforming locations and six distribution centers in the next three months as it eliminates 4.5 percent of its workforce. The closings will reduce Office Depot’s North American sites to 1,163 from 1,275. Fourteen more stores will close in 2009 when their leases expire.

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“Today’s announcement boosts cash flow in year one, which improves the company’s prospects for survival,” said Poole. His firm manages $34 billion, including Office Depot shares.
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[Eric J in MN]

1. An Office Max I used to often go to closed recently. NT

NT

[blue_onyx]

2. The Office Depot near me is usually empty

so I bet it will close. Walmart opening across the street last year probably didn't help the store either.

[Fumesucker]

3. Office Depot, Officemax and Staples are all within about a half mile of each other here..

None of them seem particularly busy, I'd be willing to bet at least one will close soon.

[David__77]

4. It seems to me that this market has long been oversaturated.

There are Staples, Office Max, Office Depot all over the place where I live, and they never seemed particularly busy. Business customers usually shop online anyway. It's bad for the employees of course, in the short run anyway.