August 27, 2014
BOCA RATON, Fla. (AP) - Office Depot is planning to close at least 400 U.S. stores, as its merger with OfficeMax resulted in an overlap of retail locations that can be consolidated.
Office Depot Inc. expects to close 150 stores this year, mostly in the fourth quarter. All of the store closures are anticipated to occur by the end of 2016.
The company has more than 2,000 stores globally.
The store closings are expected to result in at least $75 million in annual savings by 2016's end and add to earnings starting next year.
Office Depot said Tuesday that it's still trying to determine expected working capital savings and costs related to the store closings.
Shares of the Boca Raton company climbed more than 8 percent in premarket trading.
Copyright 2014 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Viewers with disabilities can get assistance accessing this station's FCC Public Inspection File by contacting the station with the information listed below. Questions or concerns relating to the accessibility of the FCC's online public file system should be directed to the FCC at 888-225-5322, 888-835-5322 (TTY), or firstname.lastname@example.org.