Office Depot to close 112 stores
Office Depot Inc. will close 112 “underperforming” retail stores in North America and has cut down the number of planned store openings for next year.
The Delray Beach, FL-based retailer said the stores would be closed over the next three months, reducing the number of North American stores to 1,163. The stores slated for closure include 45 in the central US; 40 in the Northeast and Canada; 19 in the West; and eight in the South. The company, which did not disclose the store locations or the number of employees expected to be laid off, said the moves were part of a strategic review announced in October.
The company said it will close an additional 14 stores next year and will only open 20 of the 40 originally planned stores. In addition, six of its 33 distribution facilities in North America will be closed.
The company said it would take charges related to the closures ranging from $270 million to $300 million for the remainder of this year and in 2009.