Company Plans To Close 110 Retail Stores
ITASCA, Ill., Jan. 10 /PRNewswire-FirstCall/ -- OfficeMax(R) Incorporated
(NYSE: OMX), a leader in office products and services, today announced steps
the company plans to take in the first quarter of 2006 to improve the
company's performance. The planned actions include the closure of 110 retail
stores across the U.S. by the end of the first quarter of 2006, the ceasing of
operations at the company's wood-polymer building materials facility, reported
as a discontinued operation, and other restructuring activities. As indicated
previously, the company plans to provide details concerning its operating plan
on a date to be announced within the next 30 days.
"Today's announcement of store closings marks a difficult but necessary
step toward improving our company's overall performance," said Sam Duncan, the
Chairman and Chief Executive Officer of OfficeMax. "In 2005, we completed a
comprehensive review of our real estate portfolio, assessing each of our
individual stores based on performance and growth potential. As a result, we
identified 110 stores that we intend to close by the end of the first quarter
2006."
"The store consolidation plan does not change our optimistic outlook with
regard to new store development, and we continue to expect that we will open
up to 70 new OfficeMax stores in 2006, using primarily our new Advantage store
prototype format, to strengthen our position in key areas of the country."
Taking into account the store closings announced today and the planned store
openings in 2006, OfficeMax expects to end 2006 with approximately 887
domestic retail stores.
In addition to the store closings, OfficeMax is also undertaking other
restructuring actions. In the first quarter of 2006, OfficeMax will cease
operations at its wood-polymer building materials facility located near Elma,
Washington, which has been reported as a discontinued operation since 2004.
OfficeMax will also undertake other restructuring activities in its
international operations related to several efficiency initiatives, including
the closing of five retail stores in Canada.
In connection with the domestic retail store closings, OfficeMax expects
to record pretax costs and expenses totaling approximately $141 million. In
connection with exiting the wood-polymer building materials business,
OfficeMax expects to record total pretax costs and expenses of approximately
$41 million. In connection with the other restructuring activities in the
company's international operations, OfficeMax expects to record pretax costs
and expenses of approximately $5 million. In total, OfficeMax expects to
record charges of $187 million, including approximately $46 million incurred
in the fourth quarter of 2005 and approximately $141 million to be incurred in
the first quarter of 2006.
Additional details regarding the planned store closings and related
restructuring charges have been disclosed in the company's filing today on
Form 8-K with the Securities and Exchange Commission (SEC). This filing may be
accessed through the Investors section at http://www.officemax.com or the
website of the SEC at http://www.sec.gov.
Forward-Looking Statements
Certain statements made in this press release and other written or oral
statements made by or on behalf of the Company may constitute "forward-looking
statements" within the meaning of the federal securities laws. Statements
regarding future events and developments and the Company's future performance,
as well as management's expectations, beliefs, intentions, plans, estimates or
projections relating to the future, are forward-looking statements within the
meaning of these laws. Management believes that these forward-looking
statements are reasonable; however, you should not place undue reliance on
such statements. These statements are based on current expectations and speak
only as of the date of such statements. The Company undertakes no obligation
to publicly update or revise any forward-looking statement, whether as a
result of future events, new information or otherwise. Important factors
regarding the Company which may cause results to differ from expectations are
included in the Company's Annual Report on Form 10-K for the year ended
December 31, 2004, including under the caption "Cautionary and Forward-Looking
Statements", and in other filings with the SEC.
About OfficeMax
OfficeMax is a leader in both business-to-business and retail office
products distribution. OfficeMax delivers an unparalleled customer experience
-- in service, in product, in time savings, and in value -- through a
relentless focus on its customers. The company provides office supplies and
paper, print and document services, technology products and solutions, and
furniture to large, medium and small businesses and consumers. Prior to the
actions discussed in this press release, OfficeMax customers are served by
approximately 40,000 associates through direct sales, catalogs, Internet and
approximately 950 superstores. OfficeMax trades on the New York Stock Exchange
under the symbol OMX. More information can be found at
http://www.officemax.com.
OfficeMax Media Contact OfficeMax Investor Relations Contact
Bill Bonner John Jennings
630 438 8584 630 438 8760
SOURCE OfficeMax Incorporated
 back to top
Related links:
http://www.officemax.com
CONTACT:
Media: Bill Bonner, +1-630-438-8584, or
Investor Relations: John Jennings, +1-630-438-8760, both of
OfficeMax
|
