Failed $6B merger cost Staples $340M
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The company has completed 19 store closures so far this year.
The failed merger with Office Depot was cited as one of the main reasons for a $766 million loss from Staples in the company’s second quarter of 2016.
Of those losses from the Framingham company, $340 million, was attributed to costs associated with the failed acquisition of Office Depot, and costs associated with the termination of the merger agreement. Staples owed Office Depot a $250-million break-up fee.
Total company sales for the second quarter of 2016 were $4.8 billion, a decrease of 3.7 percent compared to the second quarter of 2015. Excluding the impact of changes in foreign exchange rates, store closures and the sale of the company’s Staples Print Solutions business, total company sales for the second quarter of 2016 decreased two percent compared to the second quarter of 2015, according to the company.
The news comes as the company restructures both its business model and leadership following the failed merger attempt. Part of that restructuring included closing 50 stores, 19 of which have closed so far this year. Five of those stores closed in the second quarter, according to Staples.
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