It's been reported that Office Depot will be closing 112 stores. Although not filing for bankruptcy, it appears to be joining the ranks of Circuit City and CompUSA. Office Depot claims that the closing of underperforming stores is in alignment with it's strategic goals.
The move will allow Office Depot to reduce expenses and continue to be competitive in a changing market. New online competitors such as StockMyOffice.com seek to grow their market share in the office supply space. Included in the store 112 store closings are 6 distribution facilities and 2,200 employees that will be added to the current high unemployment rate.
In my own opinion, Office Depot is going to have a tough time moving office chairs, desks and office supplies at an affordable price if they have to support the overhead of stores and facilities that are not profitable on their own. I'm sure the store locations were a good pick at the time, but things change from one minute to the next, and unfortunately, sometimes consolidation is a necessary evil for big companies to stay competitive.