Staples could go private in turnaround attempt
Grant Welker
Staples could be sold to private-equity owners as the Framingham company continues its turnaround attempt.
Framingham office-supply retailer Staples is exploring a potential sale to private-equity owners, according to a Wall Street Journal report Tuesday, in what would be the latest and most significant change in its years-long turnaround attempt.
Staples is in talks with a small number of firms, the Journal reported, citing unnamed sources familiar with the matter. The talks were said to be in early stages, with a deal not guaranteed.
A deal could value the company at around $7 billion or more, the Journal said.
Staples has taken a series of steps to turn around its sagging performances in recent years.
Just last month, Staples announced it plans to close about 70 stores in North America this year after reporting a 2016 net loss of $615 million. Staples had closed 345 stores since 2011, or nearly one-fifth of all its locations. It closed 48 last year, bringing the current number to just over 1,500 North American stores.
Staples has also looked to move beyond just office supplies. Last year, Staples opened three co-working spaces in Massachusetts in a partnership with Boston-based Workbar, with conference space, private rooms for phone calls, printers and wireless internet for those who pay a monthly membership fee.
Losses have piled up for Staples in recent years. Last December, it sold its European division at a loss of $117 million, about six months after the company's planned $6-billion merger with rival Office Depot fell apart.
Sales last year fell by nearly 3 percent to just over $18 million.
Staples stock price spiked to a three-month high on Tuesday, after the Journal first reported online that the company was exploring a potential sale. As of Wednesday morning, shares were trading at about $9.80.
Shares of the company peaked at over $27 more than a decade ago, and are at about half their value as of the end of 2014.
Read more
WBJ Web Partners
Most Recent
Most Recent
0 Comments