Office Depot to Pay $197M for 124 Retail Sites

DELRAY BEACH, FL-In a step to grow its retail portfolio, locally based Office Depot has reached an agreement to acquire 124 former Kids ‘R’ Us stores for $197 million in cash, in addition to the taking over of lease payments and other obligations.

The 124 stores consist of properties owned by Toys ‘R’ Us Inc. and stores with ground or operating leases. Office Depot plans to convert between 50 and 60 of the 124 stores into Office Depots. “The rest will be sold off,” Office Depot spokesman Brian Levine tells GlobeSt.com. “We have significant interest from both developers and other retailers, so we are looking to sell off the other properties.”

Of the stores to be acquired, seven are located in Florida. Not all of them will be converted into Office Depot stores, Levine says.