Office Depot Closing Stores

[This post is written and copyrighted by FIRE Finance (http://firefinance.blogspot.com).]

Office Depot (ODP) is closing 112 stores and planning to lay off 2200 people in an effort to earn a short term financial boost. This move will reduce the chain's base to 1163 stores. They plan to close 45 stores in the Central U.S., 40 in the Northeast and Canada, 19 in the West and 8 in the South. Also, six of its 33 North American distribution facilities will be shut down.

Office Depot has taken this action to give their stock a boost after they reported a third-quarter loss due to slumping sales as consumers and small businesses cut back spending in October. Their shares (ODP), which had tumbled more than 82 percent since the beginning of the year, climbed 22 cents to $2.65 after their announcement to scale down operations by 9 percent. To liquidate the material in the stores, they plan to work with Gordon Brothers Retail Partners LLC.

It might pay off to use up our Office Depot rewards points (associated with local stores) or scour for some bargain deals at a local Office Depot which is shutting down.

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