OfficeMax

Last updated
OfficeMax
Company type Subsidiary
Industry Retail
FoundedApril 1, 1988;35 years ago (1988-04-01)
Cleveland, Ohio, U.S.
FounderBob Hurwitz
Michael Feuer
Number of locations
941 (2021)
Area served
 United States
Mexico (since 1996)
New Zealand
ProductsOffice supplies
Parent Kmart (1991–1995)
Boise Cascade (2003–2004)
Office Depot (2013–present)
Website www.officedepot.com

OfficeMax is an American office supplies retailer founded in 1988. As an independent chain, it was the third-largest office supply retailer in the United States. Following a 2013 merger, it is currently a brand and subsidiary of Office Depot. [1]

Contents

The first OfficeMax store, located in Mayfield Heights, Ohio. OfficeMax Mayfield Heights.JPG
The first OfficeMax store, located in Mayfield Heights, Ohio.
OfficeMax in Mexico City Office Max building in Mexico City, 2010.jpg
OfficeMax in Mexico City
An OfficeMax in Ann Arbor, Michigan. OfficeMax Arborland Shopping Center Ann Arbor Michigan.JPG
An OfficeMax in Ann Arbor, Michigan.

History

OfficeMax was founded in Cleveland on April 1, 1988, 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. Hurwitz left the company in 1993 and Feuer became the chairman and chief executive officer. [2]

OfficeMax grew by acquisition with Office World first in November 1990, with Office World executive and Montgomery Ward becoming minority shareholders. [3] In 1990, Office Square stores were purchased from Kmart, in exchange for a 22% equity stake. [4] In 1991, Kmart increased its stake in OfficeMax to 92%. [5] In January 1992, OfficeMax acquired five sites from Highland Superstores in Boston. OW Office Warehouse, a Virginia-based regional chain, was acquired on June 30, 1992. [6] The company then acquired BizMart, its largest acquisition (104 stores) to date, in 1993 from Intelligent Electronics. [7] On August 16, 1993, OfficeMax joined Kmart and most of the other Kmart-owned banners in the "largest power center" Kmart operated in Utica, Michigan. [8] OfficeMax acquired a 19% stake in Corporate Express, a contract stationer. [9] 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. [10] Kmart's shareholders turn down the proposal at their June 3 annual meeting. [11] In November 1994, FurnitureMax store within a store concept begins testing in the Cleveland market. [12] 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. [13]

Public corporation

In 1995, OfficeMax became one of a handful of companies doing business through internetMCI. [14] Around this time Kmart sold the remaining 25% of the OfficeMax shares it held. [15] On July 14, 1996, a new kiosk program called BatteryMax was test launched in two Phoenix stores. BatteryMax were operated by 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. [16] 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. [17]

A small sized store concept, OfficeMax PDQ, test was launched in Woodmere, Ohio, in late June 1998. [18] By 2001, the chain operated 960 stores. [19] That year, OfficeMax began closing underperforming stores in some neighborhoods and in regions where it did not have a strong presence. [20] In 2003, OfficeMax was acquired by Boise Cascade Corporation for $1.3 billion. [21] The following year, the combined company split into two: its wood and paper operations were acquired by Madison Dearborn Partners, and the remaining company adopted the OfficeMax name. [22]

In December 2012, OfficeMax operated 941 stores in 47 states, Puerto Rico, the U.S. Virgin Islands and Mexico; that year, net sales were $6.9 billion, down from $8.3 billion in 2008. [23]

Merger with Office Depot

It was announced on February 20, 2013, that OfficeMax and Office Depot would combine in an all-stock deal, creating the largest U.S. office-supplies chain. [24] 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 OfficeMax shareholders 2.69 shares of Office Depot in exchange for a single share in OfficeMax. 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..." [25] 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 finished reviewing documents relating to its merger with OfficeMax.

The merger with Office Depot closed on November 5, 2013. [26] On December 10, Office Depot, Inc. announced that it had chosen Boca Raton, Florida for its global headquarters post-merger, closing the OfficeMax headquarters in Naperville, Illinois. [27]

Following the merger, the two chains integrated, though many retain the OfficeMax name. Some have since closed, while others rebranded as Office Depot following renovations. [28] The first OfficeMax closed permanently on May 16, 2015. [29]

New Zealand branch closures

On 26 August 2020, OfficeMax announced that it would be closing all 14 of its New Zealand branches and shift operations online in response to growing online usage and the COVID-19 pandemic in New Zealand. [30] [31]

See also

Related Research Articles

<span class="mw-page-title-main">Kmart</span> American retailing company

Kmart Corporation, now operated by Transformco, is an online retailer in the United States and operates 6 remaining Kmart big-box department stores — 3 in the US Virgin Islands and one each in Miami, Florida; Bridgehampton, Long Island; and Tamuning, Guam.

<span class="mw-page-title-main">Hypermarket</span> Big-box store combining a supermarket and a department store

A hypermarket is a big-box store combining a supermarket and a department store. The result is an expansive retail facility carrying a wide range of products under one roof, including full grocery lines and general merchandise. In theory, hypermarkets allow customers to satisfy all their routine shopping needs in one trip. The term hypermarket was coined in 1968 by French trade expert Jacques Pictet.

A discount store or discounter offers a retail format in which products are sold at prices that are in principle lower than an actual or supposed "full retail price". Discounters rely on bulk purchasing and efficient distribution to keep down costs.

Waldenbooks was an American shopping mall-based bookstore chain operated by the Walden Book Company, Inc., and from 1995 was a subsidiary of Borders Group. The chain also ran a video game and software chain under the name Waldensoftware, as well as a children's educational toy chain under Walden Kids. In 2011, the chain was liquidated in bankruptcy.

<span class="mw-page-title-main">Makro</span> Brand of warehouse clubs

Makro is a Dutch international brand of warehouse clubs, also called cash and carry stores. Makro was founded by SHV Holdings, a Dutch conglomerate based in Utrecht in partnership with German company Metro AG, with the first warehouse club opened in Amsterdam in 1968. Currently, ownership of the worldwide chain of stores is split between different companies like Metro AG in Europe, SHV Holdings in Latin America and CP All in Asia. In many countries, access to stores is restricted to business customers, and the stores are not open to the general public.

<span class="mw-page-title-main">McCrory Stores</span> American store chain

McCrory Stores or J.G. McCrory's was a chain of five and dime stores in the United States based in York, Pennsylvania. The stores typically sold shoes, clothing, housewares, fabrics, penny candy, toys, cosmetics, and often included a lunch counter or snack bar. They also exclusively sold Oriole Records, one of the most popular 'dime store labels' from 1921 to 1938.

<span class="mw-page-title-main">Zayre</span> Defunct discount retailer in the United States

Zayre was a chain of discount stores that operated in the eastern half of the United States from 1956 to 1990. The company's headquarters was in Framingham, Massachusetts. In October 1988, Zayre's parent company, Zayre Corp., sold the stores to the competing Ames Department Stores, Inc. chain, and in June 1989, Zayre Corp. merged with one of its subsidiaries, The TJX Companies, parent company of T.J. Maxx, which still exists today. A number of stores retained the Zayre name until 1990, by which time all stores were either closed or converted into Ames stores.

<span class="mw-page-title-main">Kmart Australia</span> Australian multinational discount department store chain owned by Wesfarmers

Kmart Australia Limited is an Australian chain of retail department stores owned by the Kmart Group division of Wesfarmers.

<span class="mw-page-title-main">Steinberg's (supermarket)</span> Defunct Canadian supermarket chain

Steinberg's was a large family-owned Canadian grocery store chain that mainly operated in the province of Quebec and later Ontario. In addition to its flagship supermarket chain, the company operated several subsidiaries across the country. The company went bankrupt in 1992, three years after being sold to private interests, after 75 years in business.

<span class="mw-page-title-main">PetSmart</span> American pet supply store chain

PetSmart Inc. is a privately held American chain of pet superstores, which sell pet products, services, and small pets. It is the leading North American pet company, and its direct competitor is Petco. Its indirect competitors are Amazon, Walmart, and Target. As of 2020, PetSmart has more than 1,650 stores in the United States and Canada. Its stores sell pet food, pet supplies, pet accessories, and small pets. Stores also provide services including grooming, dog daycare, dog and cat boarding, veterinary care via in-store third-party clinics, and dog training. They also offer dog and cat adoption via in-store adoption centers facilitated by the non-profit PetSmart Charities.

<span class="mw-page-title-main">ALCO Stores</span> Defunct retail store

ALCO Stores, Inc. was a retail chain operating 198 stores in 23 states, primarily in the United States Midwest. The company was founded in 1901 in Kansas by Alva Lease Duckwall.

Dominick's was a Chicago-area grocery store chain and subsidiary of Safeway Inc. Dominick's distribution center was located in Northlake, Illinois, while its management offices were located in Oak Brook, Illinois.

<span class="mw-page-title-main">Coles Group</span> Australian public company

Coles Group Limited is an Australian public company operating several retail chains. Its chief operations are primarily concerned with the sale of food and groceries through its flagship supermarket chain Coles Supermarkets, and the sale of liquor through its Coles Liquor outlets. Since its foundation in Collingwood, Victoria in 1914, Coles has grown to become the second-largest retailer in Australia after its principal rival, Woolworths, in terms of revenue.

<span class="mw-page-title-main">Heck's</span>

Heck's Department Store, a chain of West Virginia based discount department stores, was founded by Boone County natives and businessmen Fred Haddad, Tom Ellis, and Lester Ellis and wholesale distributor Douglas Cook. The Heck's name was a combination of the names Haddad, Ellis and Cook. Haddad served as president, Lester Ellis was vice-president, and Tom Ellis was Secretary-Treasurer.

Massmart Holdings Limited is a South African firm that owns local brands such as Game, Makro, Builder's Warehouse and CBW. It is the second-largest distributor of consumer goods in Africa, the largest retailer of general merchandise, liquor and home improvement equipment and wholesaler of basic foods. As of 31 October 2022, Massmart operated 411 stores in South Africa and 12 other Sub-Saharan countries. Its head offices are in the Massmart House in Sandton, Johannesburg.

Sears Holdings Corporation was an American holding company headquartered in Hoffman Estates, Illinois. It was the parent company of the chain stores Kmart and Sears and was founded after the former purchased the latter in 2005. It was the 20th-largest retailing company in the United States in 2015. It filed for Chapter 11 bankruptcy on October 15, 2018, and sold its assets to ESL Investments in 2019. The new owner moved Sears assets to its newly formed subsidiary Transform Holdco LLC and after that, Sears Holdings Corporation was closed.

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. ↑ Arlene Fine "OfficeMax ... in the beginning". Cleveland Jewish News. 18 Nov, 2011.
  3. ↑ Laura Liebeck "OfficeMax, Office World to merge into one chain - Shakeout in office supply segment looms" . Discount Store News. FindArticles.com. 18 Feb, 2011.
  4. ↑ Laura Liebeck (December 17, 1990). "K Mart support to spur OfficeMax expansion – office supply warehouse stores – K Mart's Fresh New Face". Discount Store News. FindArticles.com. Archived from the original on May 29, 2006. Retrieved January 6, 2017.
  5. ↑ "Kmart ups OfficeMax stake" . Discount Store News. FindArticles.com. 18 Feb, 2011.
  6. ↑ Laura Liebeck "OfficeMax moves headquarters; acquisitions help expansion" . Discount Store News. FindArticles.com. 18 Feb, 2011.
  7. ↑ "OfficeMax acquires BizMart; 3 major superstores remain" . Discount Store News. FindArticles.com. 18 Feb, 2011.
  8. ↑ "Kmart opens largest power center - multistore Kmart complex opens in Utica, Mich" . Discount Store News. FindArticles.com. 18 Feb, 2011.
  9. ↑ "Sports Authority OfficeMax shares on the block; Kmart spin-offs could raise $700M" . Discount Store News. FindArticles.com. 18 Feb, 2011.
  10. ↑ "Kmart reveals details of specialty chain stock sale". Discount Store News. FindArticles.com. May 16, 1994. Archived from the original on July 8, 2012. Retrieved 7 January 2018.
  11. ↑ 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.
  12. ↑ Andreoli, Teresa (June 5, 1995). "Furniture: the next mass superstore star". Discount Store News. Archived from the original on February 7, 2011. Retrieved 6 January 2018.
  13. ↑ 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.
  14. ↑ Halverson, Richard (April 3, 1995). "Mass market goes on line; Service Merchandise, OfficeMax tap cybersales – retailing on computer networks". Discount Store News. FindArticles.com. Archived from the original on December 24, 2005. Retrieved January 6, 2018.
  15. ↑ Jim Silver "Kmart to Sell OfficeMax Stake, Raising About $347.9 Million". Journal Record, The (Oklahoma City). FindArticles.com. 18 Feb, 2011.
  16. ↑ "Circuit City Stores, Inc. v. OfficeMax, Inc., 949 F. Supp. 409 (E.D. Va. 1996)". Justia Law. Retrieved 2017-01-29.
  17. ↑ "OfficeMax reveals plans at shareholders meeting". Discount Store News. FindArticles.com. Archived from the original on September 11, 2011. Retrieved January 6, 2018.
  18. ↑ Mike Troy "OfficeMax unveils new prototypes". Discount Store News. FindArticles.com. 18 Feb, 2011.
  19. ↑ "OfficeMax opens 23,500 sf store in Cottage Grove". GlobeSt. Retrieved 2023-08-19.
  20. ↑ "OfficeMax plans nationwide closings, including city store". The Oklahoman. Retrieved 2023-08-19.
  21. ↑ "OfficeMax to get $129 mln from Boise Cascade's IPO", Feb. 12, 2013. marketwatch.com
  22. ↑ Henderson, Nell (2004-07-27). "Boise Cascade Quits Forest Industry, Will Focus on Office Supplies". The Washington Post . ISSN   0190-8286.
  23. ↑ "OfficeMax 2012 Annual Report". Office Depot Inc. Archived from the original on 9 January 2016. Retrieved 29 October 2014.
  24. ↑ "Office Depot, OfficeMax to Merge to Compete With Staples". Bloomberg. Retrieved 20 February 2013.
  25. ↑ Baynes, Terry (May 2, 2013). "OfficeMax investor sues to block merger with Office Depot". Reuters. Archived from the original on September 24, 2015. Retrieved October 23, 2016.
  26. ↑ "Office Depot and OfficeMax Complete Merger". MarketWatch. November 5, 2013. Retrieved November 11, 2013.
  27. ↑ "Office Depot moving OfficeMax HQ from Naperville to FL". WLS-TV. December 10, 2013.
  28. ↑ Ewoldt, John. "Twin Cities' Office Depot/Office Max store closings start to leak out". Star Tribune. Retrieved 2023-08-19.
  29. ↑ Dorn, Sara (2015-12-04). "Fresh Thyme to open in 2016 in Mayfield Heights". cleveland. Retrieved 2023-08-19.
  30. ↑ Shaw, Aimee (26 August 2020). "OfficeMax set to shut down its retail stores". New Zealand Herald . Retrieved 26 August 2020.
  31. ↑ Foxcroft, Debrin (26 August 2020). "OfficeMax closing its shops in New Zealand". Stuff . Retrieved 26 August 2020.

Further reading

This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.