Office Depot Inc., the world's second-largest office-supplies retailer, said it will close 112 underperforming locations in North America in the next three months and cut planned store openings to lower capital spending.
Six of 33 North American distribution facilities will also be shut, Delray Beach, Florida-based Office Depot said today in a statement. The store count will fall to 1,163 as a result of closing 45 locations in the central U.S., 40 in the Northeast and Canada, 19 in the west and eight in the south.
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, Office Depot had projected that it would spend $225 million in 2009. The moves will boost cash flow next year by $70 million, it said.