OfficeMax

OfficeMax
Subsidiary
Brand
Industry Retail
Fate Merged with Office Depot
Founded April 1, 1988 (1988-04-01)
Cleveland, Ohio, U.S.
Founder
  • Bob Hurwitz
  • Michael Feuer
Headquarters 6600 North Military Trail
Boca Raton, Florida, U.S. 33449
Area served
 United States, Canada and Mexico
Products Office supplies
Parent Office Depot (2013–present)
Website www.officedepot.com

OfficeMax is an American office supplies retailer founded in 1988. It is now a subsidiary of Office Depot, Inc., which is headquartered in Boca Raton, Florida.[1] As of December 2012, OfficeMax operated 941 stores in 47 states, Puerto Rico, the U.S. Virgin Islands and Mexico. In 2012, net sales were $6.9 billion, down from $8.3 billion in 2008.[2]

On February 20, 2013, an all-stock merger between Office Depot and OfficeMax was announced.[3] The merger was completed on November 5, 2013,[4] creating the largest U.S. office-supplies chain.[3] The OfficeMax name continues to serve as a brand of the newly formed Office Depot, Inc.

The first OfficeMax store, located in Mayfield Heights, Ohio.
OfficeMax in Mexico City
An OfficeMax in Ann Arbor, Michigan.
An OfficeMax store in Toledo, Ohio.

History

On April 1, 1988, OfficeMax was founded in Cleveland, Ohio, by Bob Hurwitz and Michael Feuer. Hurwitz served as executive chairman and chief executive officer, and Feuer was the president and chief operating officer. On July 5, 1988, OfficeMax opened its first retail store in the Golden Gate Shopping Center in Mayfield Heights, Ohio; after being open for 27 years, this location closed on May 16, 2015. Hurwitz left the company in 1993 and Feuer became the chairman and chief executive officer.[5]

OfficeMax grew by acquisition with Office World first in November 1990, with Office World executive and Montgomery Ward becoming minority shareholders.[6] In 1990, Office Square stores were purchased from Kmart, in exchange for a 22% equity stake.[7] In 1991, Kmart increased its stake in OfficeMax to 92%.[8] In January 1992, OfficeMax acquired five sites from Highland Superstores in Boston. OW Office Warehouse, a Virginia-based regional chain, was acquired in June 30, 1992.[9] The company then acquired BizMart, its largest acquisition (104 stores) to date, in 1993 from Intelligent Electronics.[10] On August 16, 1993, OfficeMax joined Kmart and most of its other specialty stores in the "largest power center" in Utica, Michigan and joined by Best Buy.[11] OfficeMax acquires a 19% stake in Corporate Express, a contract stationer.[12] In May 1994, Kmart put a plan in front of its stockholders to sell 20% to 30% of each of its specialty store subsidiaries shares on the open market to pay down debt and fund future expansion of the subsidiaries.[13] Kmart's shareholders turn down the proposal at their June 3 annual meeting.[14] In November 1994, FurnitureMax store within a store concept begins testing in the Cleveland market.[15] In 1995, Kmart sold off 51% of OfficeMax shares, spinning off the company and became a NYSE-(OMX) publicly traded corporation, based in Shaker Heights, Ohio.[16]

Public corporation

In 1995, OfficeMax became one of a handful of companies doing business through internetMCI.[17] Around this time Kmart sold the remaining 25% of the OfficeMax shares it held.[18] On July 14, 1996, a new kiosk program called BatteryMax was test launched in two Phoenix stores. BatteryMax were operated by Batteries Batteries for Everything.

OfficeMax also filed lawsuits for infringement for use of the "Max" name against Med Max and Circuit City for CarMax, its used car business. For the next few years OfficeMax and its rivals, Staples and Office Depot, continued to open new stores, saturating the market segment.

OfficeMax developed regional delivery centers, and invested in its super-regional PowerMax distribution centers in Las Vegas, Nevada, Hazleton, Pennsylvania, and Birmingham, Alabama after litigation began with previous logistics and shipping provider.[19] A small sized store concept, OfficeMax PDQ, test was launched in Woodmere, Ohio in late June 1998.[20] All the while OfficeMax was losing the most money of the three.

Purchase by Boise

From 2001 OfficeMax began closing under-performing stores in some neighborhoods and in regions where it did not have a strong presence. In 2003 OfficeMax was acquired for $1.3 billion [21] by Boise Cascade Office Products Corporation, who later rebranded themselves OfficeMax.[21]

Merger with Office Depot

It was announced February 20, 2013, that OfficeMax and Office Depot would combine in an all-stock deal, creating the largest U.S. office-supplies chain.[22] However, as of May 2, 2013, a lawsuit filed by a stockholder, Hollander v. OfficeMax Inc et al., U.S. District Court, Northern District of Illinois, No. 13-3330 was filed to block the merger, which would pay all Office Max shareholders 2.69 shares of Office Depot in exchange for a single share in Office Max. Eric Hollander said in a statement "OfficeMax, if properly exposed to the market for corporate control, would bring a price materially in excess of the amount offered in the proposed transaction..."[23] Office Depot said on May 5, 2013 that it would hold a special meeting with shareholders after the staff of the U.S. Securities and Exchange Commission finishes reviewing documents relating to its merger with OfficeMax. On November 5, 2013, the merger was completed.[24]

On December 10, 2013 Office Depot, Inc. announced that it has chosen Boca Raton, Florida for its global headquarters post merger, closing the OfficeMax headquarters in Naperville, IL.

On February 4, 2015, Office Depot agreed to be acquired by rival Staples for $6.3 billion.[25]

On December 7, 2015, the Federal Trade Commission voted to block the merger.

See also

References

Notes

  1. ↑ Marcia Heroux Pounds (11 December 2013). "Office Depot picks Boca Raton HQ over Chicago-area". Sun Sentinel. Retrieved 29 October 2014.
  2. ↑ "OfficeMax 2012 Annual Report". Office Depot Inc. Retrieved 29 October 2014.
  3. 1 2 "Office Depot, OfficeMax to Merge to Compete With Staples". Bloomberg. Retrieved 20 February 2013.
  4. ↑ Dhanya Skariachan (5 November 2013). "Office Depot closes deal to buy OfficeMax". Reuters.
  5. ↑ Arlene Fine "OfficeMax ... in the beginning". Cleveland Jewish News. 18 Nov, 2011.
  6. ↑ Laura Liebeck "OfficeMax, Office World to merge into one chain - Shakeout in office supply segment looms" . Discount Store News. FindArticles.com. 18 Feb, 2011.
  7. ↑ Laura Liebeck "K Mart support to spur OfficeMax expansion - office supply warehouse stores - K Mart's Fresh New Face" . Discount Store News. FindArticles.com. 18 Feb, 2011.
  8. ↑ "Kmart ups OfficeMax stake" . Discount Store News. FindArticles.com. 18 Feb, 2011.
  9. ↑ Laura Liebeck "OfficeMax moves headquarters; acquisitions help expansion" . Discount Store News. FindArticles.com. 18 Feb, 2011.
  10. ↑ "OfficeMax acquires BizMart; 3 major superstores remain" . Discount Store News. FindArticles.com. 18 Feb, 2011.
  11. ↑ "Kmart opens largest power center - multistore Kmart complex opens in Utica, Mich" . Discount Store News. FindArticles.com. 18 Feb, 2011.
  12. ↑ "Sports Authority OfficeMax shares on the block; Kmart spin-offs could raise $700M" . Discount Store News. FindArticles.com. 18 Feb, 2011.
  13. ↑ "Kmart reveals details of specialty chain stock sale". Discount Store News. FindArticles.com. 18 Feb, 2011.
  14. ↑ Laura Liebeck "Super K opening lifts sagging Kmart spirits; board fails to resolve spin-off question - Super Kmart Center, Michigan". Discount Store News. FindArticles.com. 18 Feb, 2011.
  15. ↑ Teresa Andreoli Feb, 2011. "Furniture: the next mass superstore star". Discount Store News. FindArticles.com.
  16. ↑ Laura Liebeck "Deja vu: Kmart to remake itself; spin-offs will shift focus to core discount stores". Discount Store News. FindArticles.com. 18 Feb, 2011.
  17. ↑ Richard Halverson "Mass market goes on line; Service Merchandise, OfficeMax tap cybersales - retailing on computer networks". Discount Store News. FindArticles.com. 18 Feb, 2011.
  18. ↑ Jim Silver "Kmart to Sell OfficeMax Stake, Raising About $347.9 Million". Journal Record, The (Oklahoma City). FindArticles.com. 18 Feb, 2011.
  19. ↑ "OfficeMax reveals plans at shareholders meeting". Discount Store News. FindArticles.com. 18 Feb, 2011.
  20. ↑ Mike Troy "OfficeMax unveils new prototypes". Discount Store News. FindArticles.com. 18 Feb, 2011.
  21. 1 2 "OfficeMax to get $129 mln from Boise Cascade's IPO", Feb. 12, 2013. marketwatch.com
  22. ↑ "Office Depot, OfficeMax to Merge to Compete With Staples". Bloomberg. Retrieved 20 February 2013.
  23. ↑ Baynes, Terry (May 2, 2013). "OfficeMax investor sues to block merger with Office Depot". Reuters. Retrieved October 23, 2016.
  24. ↑ "Office Depot and OfficeMax Complete Merger". MarketWatch. November 5, 2013. Retrieved November 11, 2013.
  25. ↑ McGrath, Maggie (2015-02-04). "Staples To Buy Office Depot In $6.3 Billion Deal". Forbes.

Further reading

This article is issued from Wikipedia - version of the 11/28/2016. The text is available under the Creative Commons Attribution/Share Alike but additional terms may apply for the media files.