The parent company of retailer Office Depot said on Wednesday (May 5) that it is splitting its B2B unit from its chain of 1,100 physical stores to create two independent publicly traded businesses that can focus on their respective areas of expertise while also unlocking shareholder value.
The news comes as Sycamore Partners-backed Staples has been looking to buy Office Depot. An offer it made earlier this year was reportedly blocked by the ODP Corporation on antitrust concerns.
The spin-off announcement from ODP also comes as the Florida-based office supply retailer reported its first-quarter results, which showed sales declines in both businesses. Specifically, for the three months ending March 27, ODP said sales at its business solutions division fell 16 percent to $1.1 billion, while revenue in the retail division fell 10 percent to $1.0 billion.
In a statement, the company said the decline was the result of COVID-linked disruptions related to business and school closures, as well an 11 percent — or a 150-location — reduction in its store count, which currently stands at 1,146.
“We believe creating two focused, pure-play companies will unlock significant opportunities by improving our ability to meet the needs of our customers, while better matching assets and investment profiles of…