Office Depot to close 400 US stores, posts loss

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Office Depot said it would close at least 400 stores in the United States as shoppers shift their office supply purchases to e-retailers, mass market chains, and drugstores.

Office Depot, which also reported a quarterly net loss, said it expects to close 150 stores this year.

The total store closures will generate annual run-rate savings of at least $75 million by the end of 2016 and will start adding to profit in 2015, the company said.

Office Depot posted a net loss attributable to common stockholders of $109 million, or 21 cents per share, for the first quarter ended March 29.

Shares of Office Depot rose sharply in premarket trading. (Click here for the latest quote.)

By Reuters