Colorado Springs News, Sports & Business

Gazette Premium Content Office Depot to close 400 stores

by Rich Laden The Gazette - Updated: May 6, 2014 at 6:12 pm

Office Depot has become the latest national retailer to announce store closures - the result of a merger between Office Depot and OfficeMax.

In announcing its first quarter earnings Tuesday, Office Depot said it would close at least 400 stores nationwide by 2016, including 150 this year. Stores to be closed weren't identified.

"The overlapping retail footprint resulting from the merger provides us with a unique opportunity to consolidate and optimize our store portfolio, while maintaining the retail presence necessary to serve our customers," Roland Smith, Office Depot chairman and CEO, said in a news release.

Colorado Springs has three Office Depot stores: 823 N. Academy Blvd. in the Citadel Crossing shopping center; 3640 Austin Bluffs Parkway in the Marketplace at Austin Bluffs; and at 535 S. 8th St., according to Office Depot's website.

The Springs also has three OfficeMax locations: 1640 Cheyenne Mountain Blvd. in the Cheyenne Mountain Center; 3826 Bloomington St. in the First & Main Town Center; and 7645 N. Academy Blvd. in the Market at Chapel Hills East.

Office Depot closed a Springs store last year at 1750 E. Woodmen Road in the Woodmen Commons shopping center, although it said at the time the closure was unrelated to its merger with OfficeMax.

Boca Raton, Fla.-based Office Depot completed its $1.2 billion merger with OfficeMax last year. Smith said the store closures will generate estimated annual savings of $75 million by the end of 2016.

"We are delivering merger integration synergies more quickly than anticipated," Smith said in the news release. He now expects cost savings from the merger to exceed $675 million, including the store consolidation.

The company also reported its first-quarter financial results Tuesday, which include results from OfficeMax. The year-ago results do not include OfficeMax.

For the period ended March 29, Office Depot lost $109 million, or 21 cents per share. In the prior-year period, it lost $17 million, or 6 cents per share. Removing merger-related expenses and other items, earnings were 7 cents per share.

Revenue rose to $4.35 billion from $2.72 billion. Pro forma revenue for the year-ago period was $4.48 billion.

Analysts polled by FactSet predicted earnings of 3 cents per share on revenue of $4.27 billion.

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The Associated Press contributed to this report.

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