That was easy!
Posted on 01/10/2006 11:33:12 AM PST by Extremely Extreme Extremist
(AP) ITASCA, Ill. OfficeMax Inc., the nation's No. 3 office supplies retailer, said Tuesday it will shut down 110 of its approximately 950 U.S. retail stores in the first quarter as part of a restructuring aimed at strengthening its business.
The company also said it will close its wood-polymer building materials plant in Elma, Wash., and make other moves as part of a shake-up that will result in $187 million in pretax charges.
OfficeMax did not disclose the locations of the stores targeted for closure by the end of March or how many jobs would be affected. The company will be notifying the stores involved over the next week, spokesman Bill Bonner said.
In a regulatory filing, it indicated that all the stores to be closed are superstores, which comprise the vast majority of its stores. It also plans to close five retail stores in Canada.
OfficeMax still intends to open 70 new stores this year and expects to have 887 domestic retail stores at the end of this year.
The company has been struggling to keep up with bigger competitors Staples Inc. and Office Depot Inc. and also has suffered from internal problems. Its largest shareholder, K Capital Partners LLC, demanded in November that the board of directors take immediate steps to improve its "dismal" financial and operating performance.
Sam Duncan, chairman and chief executive officer since last year, called the closings "a difficult but necessary step toward improving our company's overall performance." He said it resulted from an assessment last year of each store's results and growth potential.
The company said it plans to record pretax costs of about $141 million for the domestic store closings, roughly $41 million for exiting the building materials business, and about $5 million for restructuring its overseas operations.
About $141 million of the total charges will be incurred in this year's first quarter, while the balance was recorded in last year's fourth quarter, OfficeMax said.
OfficeMax began introducing a new store format recently that signals a shift away from the warehouse-style stores that are the industry standard, including boutique-like shopping areas, soft lighting and a cafe.
Shares in the company fell 3 cents to $26.50 in morning trading on the New York Stock Exchange. The stock dropped 19 percent in 2005.
Stapled.
you could see it coming.
They need funnier commercials like Staples. Yeah, that was easy! LOL
That was easy!
I was in an Office Max today. The price they charged me was about 15% higher than the price posted with the product. When I kicked up a fuss, they refunded the difference, but if I hadn't been paying attention, I would have been royally ripped off. How is that relevant? Well, the manager couldn't speak to me because he was on a conference call. Wondering if he was getting the news about his store.
Fax toner ribbon purchased online today
OfficeMax: $24.99 + tax
eBay: $6.50 + $7.95 S&H, no sales tax
Well....actually, you can get some office supplies at those stores. For most small businesses, though, Walmart and Target don't cut it. The market is over-saturated, though, with these stores. It will be good to thin the ranks a bit, although I'll miss the Office Max near me, and I expect it'll get killed. I prefer Staples, but there isn't a close one here.
ToysRUs is shutting a bunch of stores as well. While WalMart and Target sell toys, ToysRUs should be able to compete in that segment. I have noticed that about a third of the store is now given over to non-toy items.
OfficeMax’s corporate office has been in chaos for years. I worked there on a contract basis ~ was overpaid and had very little work to do. Theft was a big problem. There were many signs posted, warning everyone to keep all personal belongings locked up or else they would be stolen.
STAPLES NO LONGER HAS STORES THAT ARE OPEN 24 HOURS! THIS HAS NEGATIVELY IMPACTED MY LIFE.
(thank you)
All the OfficeMax's and Office Depot's in my area seem to deliberately locate near each other-- it's the same with Lowes and Home Depot. It's a wonder they ALL haven't gone out of business yet.
Office Depotted......
3 years ago, I needed a water heater. I went to the Lowes store and bought the best bargain heater and then walked across the parking lot and bought the plumbing fittings from Home Depot; sometimes it pays to co-locate.
Office Max prices are shockingly too high, so I never shop there. Staples is as a much better deal.
ToysRUs got too much clothing etc and lost focus on its toys.
When I can't find a toy at ToysRUs, but can at WalMart or KMart, there is a problem.
By law, there should be at least one Fry's Electronics in every city or large town and they must be open 24/7. At least it would be if I was King for a day.
I hereby nominate you as king.
Thank you.
The only Office Max in my town is less than half a mile from an Office Depot on the same freeway frontage road. I'm always amazed it stays in business considering how few customers I see inside compared to the Office Depot. Office Depot also has another location that is closer to downtown.
THEY HAVE ALSO LIMITED THE HOURS OF KINKOS SINCE FEDEX TOOK THEM OVER.
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