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OfficeMax Spending $141M to Close 110 Stores

ITASCA, IL-Lease terminations at 12% of the office supplies retailers' locations during the first quarter will cost $120 million alone. In addition, the company is shuttering its Elma, WA wood-polymer building materials operation at a cost of $41 million.

By Mark Ruda | Updated on January 10, 2006

(For more retail coverage, click GlobeSt.com/RETAIL.)

ITASCA, IL-OfficeMax Inc. will close 110 stores across the US by April, 12% of its current total, and shutter its Washington State wood-polymer building materials operation to improve its financial condition. However, it will cost the office supplies retailer $141 million to shutter the 110 underperforming stores, and OfficeMax still plans to open 70 new stores this year.

The bulk of the expense is expected to be lease terminations, according to a filing Tuesday morning with the Securities and Exchange Commission. OfficeMax expects to pay $120 million to exit leases at those 110 locations, including $53 million due this year. A company spokesman says a list of affected stores will not be available until next week, adding employees at stores set for closing had not been notified.

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