OfficeMax has announced its turnaround plan for "higher performance".
In the plan, the company says that it will be concentrating on improving its corporate infrastructure; driving operating performance improvement in the retail and contract businesses; and delivering financial performance through cost-saving initiatives and the "allocation of capital for growth".
Following on from this announcement, ‘Max has revealed plans to close 110 stores in the US by the end of Q1 2006 and a further five in Canada.
The action will result in total charges of $187 million over Q4 2005 and Q1 2006. Chairman and CEO Sam Duncan said: "This announcement of store closings marks a difficult but necessary step toward improving our company’s overall performance."
The retailer also said it expected to open 70 new stores in 2006. The new store prototype, Advantage, which is already in place in nine locations, will offer more business-focused products and is expected to increases sales.
See News Analysis ‘Turnaround test’