mom2thegirls Posted January 11, 2006 Share Posted January 11, 2006 By DAVE CARPENTER AP Business Writer CHICAGO (AP) -- OfficeMax Inc., struggling to keep up with its competition in the crowded office supplies business, said Tuesday it will close 110 retail superstores across the United States and make other restructuring moves in the first quarter. The company also said it will close its wood-polymer building materials plant in Elma, Wash., and five retail stores in Canada as part of a shake-up that will result in $187 million in pretax charges. The moves represent the latest attempt by the Itasca-based company to shake out of the doldrums after what its largest investor has blasted as a "dismal" financial and operating performance recently. It wasn't immediately clear if the restructuring was enough to satisfy that investor, K Capital Partners LLC, whose managing director, Brian Steck, demanded changes in November in a scathing letter to the board of directors. Steck's office in Boston did not immediately return a telephone message Tuesday. Analyst Anthony Chukumba of Chicago-based Morningstar Inc. said OfficeMax has been falling further behind both industry leader Staples Inc. and No. 2 Office Depot Inc. despite two years of changes, which most recently include a new store format featuring boutique-like shopping areas, soft lighting and a cafe. Chukumba said it's good strategy for OfficeMax to cut its losses and close the stores now rather than continue operating them with weak results. "Clearly, the U.S office supplies superstore market is becoming over-stored, so I actually view this as a good move," he said. 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 approximately 950 U.S. stores. OfficeMax still intends to open 70 new stores this year and expects to have 887 domestic retail stores at the end of this year. It said $46 million of the restructuring charges will be applied to the fourth quarter of 2005 and the other $141 million will be incurred in the first quarter. The company is expected to move this year to a new headquarters in nearby Naperville. Besides reporting disappointing sales, it also has suffered from internal problems. 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. Shares in the company rose 13 cents to close at $26.66 Tuesday on the New York Stock Exchange. The stock dropped 19 percent in 2005. (Copyright 2006 by The Associated Press. All Rights Reserved.) Link to comment Share on other sites More sharing options...
Gumball Posted January 11, 2006 Share Posted January 11, 2006 I hope the store here isn't one of the ones closing. It's right next to Target so it's easier to shop at that instead of the Office Depot we have. We don't have a Staples. Link to comment Share on other sites More sharing options...
jessicaw Posted January 11, 2006 Share Posted January 11, 2006 Our office max is yuck! wouldnt' miss it, i just posted something about that last week, went in there looking for laptops and its went way downhill in the past yr. But to bad for those loosing jobs, thats not good! Link to comment Share on other sites More sharing options...
sigrist_2000 Posted January 11, 2006 Share Posted January 11, 2006 their website states to check back in 7-10 days after they tell the stores that are to be closed and what will stores be opening...110 stores closing and up to 70 new stores opening. Link to comment Share on other sites More sharing options...
Crazy Mama Posted January 11, 2006 Share Posted January 11, 2006 thanks for the info. I will just have to wait the days to see which are closing and where. Link to comment Share on other sites More sharing options...
bugsette Posted January 11, 2006 Share Posted January 11, 2006 I know my husband came home from work yesterday and told me the news... that's where he works I sure hope he does not loose his job I have been downsized 7 times in 3 years can't take much more of this Link to comment Share on other sites More sharing options...
Guest Deals4Me Posted January 11, 2006 Share Posted January 11, 2006 I hope ours is one of them...it sucks and I need some new things! Link to comment Share on other sites More sharing options...
goldie Posted January 11, 2006 Share Posted January 11, 2006 I don't like ours either. I have the feeling it'll be closed down -- we have several Staples and Office Depot around town. Link to comment Share on other sites More sharing options...
msomnipotent Posted January 11, 2006 Share Posted January 11, 2006 GAAAAH!!! I guess I better get my butt down to the store and use that gift card that has been sitting in my wallet since God knows when! I don't think I need anything, though. Link to comment Share on other sites More sharing options...
BCBGirl Posted January 13, 2006 Share Posted January 13, 2006 I always go to staples for office supplies, they have much better prices, but if Office Max has a clearance, sure I will stop in. Thanks for the info! Link to comment Share on other sites More sharing options...
Cru Posted January 13, 2006 Share Posted January 13, 2006 hmmmmm........... that kinda sucks cuz the one in Utica, Michigan is actually a newer store (5yrs old?) and when they run sales their price is usually better than office depot and staples. Link to comment Share on other sites More sharing options...
luv2scrap85 Posted January 16, 2006 Share Posted January 16, 2006 Has anyone seen a list of stores that are closing? Link to comment Share on other sites More sharing options...
ObiRich Posted January 16, 2006 Share Posted January 16, 2006 Just visited their website yesterday looking, and still no list there. Link to comment Share on other sites More sharing options...
Guest Deals4Me Posted January 16, 2006 Share Posted January 16, 2006 Has anyone tried Calling their store? Link to comment Share on other sites More sharing options...
kranky Posted January 16, 2006 Share Posted January 16, 2006 I don't think I would call the store to ask if it's closing. Those people are probably depressed enough as it is. Link to comment Share on other sites More sharing options...
cthulhu Posted January 16, 2006 Share Posted January 16, 2006 I was wondering if something was up. I didn't seen any of their good deals last year like what I had the year before. Link to comment Share on other sites More sharing options...
Guest Deals4Me Posted January 17, 2006 Share Posted January 17, 2006 I don't think I would call the store to ask if it's closing. Those people are probably depressed enough as it is.Not my problem. So if thats the case, we also shouldnt go to TRU...cause the people there are losing their job too...and god forbid we shop anywhere, cause one day, those people might lose thier jobs too... Whatever. If there depressed about losing a job, come live at my house....in four years,*hubby worked at circuit city, they downsized*Went to work at a car dealership, they closed the place down*went to Carson's, the store there decided the department hubby was in was overstocked with employees , downsized*went to work at Aronsons, they treated employees like crap.*Went to work at home furniture....treated like crap there and the place closed.Now works for an insurance agency, Cigna PLEASE dont call him or anyone at that company with a claim, cause you'll make thier job harder and you might depress them. give it a rest kranky....the world cant stop becuase someone is depressed...there's drugs and therapy for depression. Link to comment Share on other sites More sharing options...
kranky Posted January 17, 2006 Share Posted January 17, 2006 I was just saying what I would do since I'd find the list easily enough online when the closings are announced. Sorry to get you all fired up. If you want to call them, have at it. Link to comment Share on other sites More sharing options...
Guest Deals4Me Posted January 17, 2006 Share Posted January 17, 2006 I was just saying what I would do since I'd find the list easily enough online when the closings are announced. Sorry to get you all fired up. If you want to call them, have at it.well more power to u if you have time to wait around for it..but I dont...I wasnt fired up...I was just saying....their "depression" isnt my problem. Same with people at mc donalds that come into work with a attitude. I ask for the manager and tell them how it is in front of the snotty cashier. Link to comment Share on other sites More sharing options...
jadedmomof2 Posted January 26, 2006 Share Posted January 26, 2006 http://www.yourcollegeonline.com/Office_Max_Closing_list.pdf Link to comment Share on other sites More sharing options...
Rebirth Posted January 26, 2006 Share Posted January 26, 2006 I would think OD is no. 3 instead of OM. The only time I go to OM is when I have a coupon. Link to comment Share on other sites More sharing options...
kranky Posted January 26, 2006 Share Posted January 26, 2006 Well, none of the ones near me are closing. Personally I prefer OM over OD - where I live, the OM is considerably larger and has better selection. I'm sure if the OD was larger I'd feel differently. Link to comment Share on other sites More sharing options...
sperdue Posted January 26, 2006 Share Posted January 26, 2006 http://www.yourcollegeonline.com/Office_Max_Closing_list.pdfOnly one in TN is remotely close to me..... like 25 minutes away. I don't know if it's worth all that. Link to comment Share on other sites More sharing options...
bsakalosky Posted January 27, 2006 Share Posted January 27, 2006 Nothing near me DARN! Link to comment Share on other sites More sharing options...
threelittlecupcakes Posted January 27, 2006 Share Posted January 27, 2006 http://www.yourcollegeonline.com/Office_Max_Closing_list.pdf Couldn't get this to work, anyone see any minnesota ones on there? Link to comment Share on other sites More sharing options...
mghtymth27 Posted January 27, 2006 Share Posted January 27, 2006 Couldn't get this to work, anyone see any minnesota ones on there?Looks like the only one on there from MN is Huntchinson (it's hard to read, not sure if spelling is correct). Link to comment Share on other sites More sharing options...
jadedmomof2 Posted January 27, 2006 Share Posted January 27, 2006 Sorry, it's a PDF(Adobe Acrobat file), I will type out a better list later if I have the time. Link to comment Share on other sites More sharing options...
threelittlecupcakes Posted January 27, 2006 Share Posted January 27, 2006 I have the latest version of adobe, but somethings just won't open and I don't know why - if someone knows if Duluth, MN is on the list so you don't have to type out a list - just curious. Thanks Link to comment Share on other sites More sharing options...
kranky Posted January 27, 2006 Share Posted January 27, 2006 The only one in MN is in Hutchinson. Link to comment Share on other sites More sharing options...
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