Office Depot closing stores, distribution centers

10/12/2008 - 14:09

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NEW YORK (Reuters) - Office Depot Inc said on Wednesday it plans to close 126 stores and has further cut its store opening plans for 2009 as the economic downturn stymies demand from small businesses and retail customers for office supplies.

Office Depot plans to close 112 underperforming retail stores in North America over the next three months. In addition, 14 stores will be closed through 2009 as their leases expire or other lease arrangements are completed, it said.

The retailer will also close six of its 33 distribution facilities in North America, and plans to open roughly 20 new stores in 2009, down from an earlier estimate of 40 stores.

Office Depot expects the actions will result in charges of $270 million to $300 million.

In October, Office Depot said it would delay opening new stores after it posted a surprise third-quarter loss.

Its sales have suffered as small business owners and retail consumers spend less on office supplies. The retailer said the trend, which has also hurt peers OfficeMax Inc and industry leader Staples , worsened amid the global financial crisis.

(Reporting by Nicole Maestri; Editing by Derek Caney)

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