Office Depot CEO to Step Down
22 August 2016 - 11:30PM
Dow Jones News
Office Depot Inc. said Monday that Chief Executive Roland Smith
would retire next year, just months after a federal judge blocked a
planned merger with rival Staples Inc.
The move means the two leaders in the office-supply space are
both looking for new CEOs in light of the failed tie-up. Staples
Chief Executive Ron Sargent stepped down as CEO in June and the
company has yet to name a successor.
A judge ultimately scuttled the transaction, siding with the
Federal Trade Commission. The FTC had argued that the combination
would lead to higher prices for large corporations that buy office
supplies in bulk.
The decision marked the second time U.S. antitrust watchdogs
have scuttled a Staples-Office Depot combination. The two brands
were also blocked from merging in 1997.
Mr. Smith will continue to be CEO until a successor is named,
which is expected by the end of first quarter of 2017, and will
remain chairman. He joined Office Depot in November 2013, just as
the company was buying rival OfficeMax Inc.
"My decision to retire has not been an easy one," Mr. Smith
said. "In 2013, I set aside a number of personal ambitions to
accept a three-year contract with Office Depot, and it's now time
for me to refocus on those priorities."
Office Depot said earlier this month that it would launch a
quarterly dividend and close an additional 300 stores as works to
cut costs. In its latest quarter, the company swung to a profit,
helped in large part by the deal's $250 million breakup fee it
received from Staples, but that its revenue was lower.
Office Depot on Monday also announced a number of changes and
new positions at lower executive levels.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
August 22, 2016 09:15 ET (13:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
ODP (NASDAQ:ODP)
Historical Stock Chart
From Apr 2024 to May 2024
ODP (NASDAQ:ODP)
Historical Stock Chart
From May 2023 to May 2024