Bloomberg reports that Office Depot plans to close 112 underperforming stores and six distribution centers as it struggles in this weak economy. Office Depot will also cut 2,200 jobs,
The world's second-largest office-supplies retailer said today in a filing that it will shutter 112 underperforming stores and six distribution centers in the next three months. The closings will reduce Office Depot's North American stores to 1,163 from 1,275. Fourteen more stores will close next year when their leases expire.
Planned new store openings for next year will be slashed in half to 20, reducing capital spending to less than $200 million in 2009, the company said. In October, Delray Beach, Florida- based Office Depot projected that it would spend $225 million in 2009. The moves will boost cash flow next year by $70 million.
The WSJ says office supply rival OfficeMax is also closing stores but not as many as Office Depot. Retailers closing stores has become an unfortunate theme during this last quarter of 2008.
Bloomberg 
