NEW YORK – Office Depot Inc. (ODP) on Monday said it would close 16 underperforming stores in North America, a move that will cost it $30.1 million, and also plans some international closures in a consolidation plan.
The office supplies retailer will also consolidate its Office Depot and Viking catalogs into one Office Depot catalog.
Office Depot said it would also close 11 retail stores and one warehouse in its international division. It will also relocate one international warehouse, consolidate some call center facilities and end a contract business in one country. Office Depot forecast total costs from its international actions of about $32.8 million.
Office Depot said it would dispose of Viking-unique inventory and no longer separately use the Viking brand (search) in the United States, but will keep Viking in Europe, where it says the brand has a strong customer following.
The company said many of its charges would be recognized in the third quarter of 2005, but some will come in the future.