||This article's lead section may not adequately summarize key points of its contents. (November 2013)|
|Founded||Cleveland, Ohio, U.S. (April 1, 1988 )|
|Headquarters||Naperville, Illinois, U.S.|
|Number of locations||991 (April 2011)|
|Area served||United States & Canada|
US$ 7.1 billion (FY 2011)
|Operating income||US$ 86.4 million (FY 2011)|
|Net income||US$ 34.8 million (FY 2011)|
|Total assets||US$ 1.9 billion (FY 2011)|
|Total equity||US$ 569 million (FY 2011)|
|Parent||Office Depot Inc.|
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; this location still remains open. Hurwitz left the company in 1993 and Feuer became the chairman and chief executive officer.
OfficeMax grew by acquisition with Office World first in November 1990, with Office World executive and Montgomery Ward becoming minority shareholders. In 1990, Office Square stores were purchased from Kmart, in exchange for a 22% equity stake. In 1991, Kmart increased its stake in OfficeMax to 92%. 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. The company then acquired BizMart, its largest acquisition (104 stores) to date, in 1993 from Intelligent Electronics. 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. OfficeMax acquires a 19% stake in Corporate Express, a contract stationer. 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. Kmart's shareholders turn down the proposal at their June 3 annual meeting. In November 1994, FurnitureMax store within a store concept begins testing in the Cleveland market. 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.
In 1995, OfficeMax became one of a handful of companies doing business through internetMCI. Around this time Kmart sold the remaining 25% of the OfficeMax shares it held. 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. A small sized store concept, OfficeMax PDQ, test was launched in Woodmere, Ohio in late June 1998. 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 and in 2003, OfficeMax was acquired for $1.3 billion. Boise Cascade Office Products Corporation, who later rebranded themselves OfficeMax.
Merger with Office Depot
|This article is outdated. (November 2013)|
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. 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..." 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.
December, 10, 2013 Office Depot, Inc. announced that it has chosen Boca Raton, Fla. for its global headquarters.
The decision is the result of a thorough evaluation that took into account a number of important factors, including the cost to operate each headquarters location, lease obligations and sublease considerations, tax implications, government incentives, ability to add associates and incorporate functions in the current space, and people-related costs.
“Selecting the headquarters location is a critical step toward integrating our two companies,” said Roland Smith, Chairman and CEO, Office Depot, Inc. “Both Florida and Illinois have many positive attributes, but our analysis concluded that Boca Raton provides the best platform for us to achieve planned synergies, leverage assets to drive improved profitability, and launch a compelling vision for the future.
“We appreciate the significant efforts from legislators in Illinois and the generous support we have received from the State of Florida, Palm Beach County, and City of Boca Raton,” Smith added. “We would like to thank Florida Governor Rick Scott, Illinois Governor Pat Quinn and the countless others involved in providing the information necessary for us to make this important decision.”
The Company will remain in its current 625,000-square-foot corporate campus located at 6600 North Military Trail in Boca Raton, which has ample space to accommodate associates who will relocate from Illinois.
“With the location of our headquarters now decided, we will quickly move forward to build a world class leadership team and organization focused on exceeding the expectations of consumers and businesses, becoming a more appealing partner to our vendors, and driving value for our shareholders,” Smith said. “To do that, we will select the best talent available from both locations.”
Office Depot, Inc. will maintain a presence in Naperville throughout the headquarters transition and accompanying integration activities.
Office Depot and OfficeMax retail store locations, customer service centers, warehouses and distribution centers are not affected by the selection of the headquarters location.
- OfficeMax Reports First Quarter 2011 Financial Results, an April 28, 2011 press release
- "OfficeMax 2011 Annual Report, Form 10-K, Filing Date Feb 24, 2012". secdatabase.com. Retrieved July 8, 2012.
- Arlene Fine "OfficeMax … in the beginning". Cleveland Jewish News. 18 Nov, 2011.
- Laura Liebeck "OfficeMax, Office World to merge into one chain - Shakeout in office supply segment looms"[dead link]. Discount Store News. FindArticles.com. 18 Feb, 2011.
- Laura Liebeck "K Mart support to spur OfficeMax expansion - office supply warehouse stores - K Mart's Fresh New Face"[dead link]. Discount Store News. FindArticles.com. 18 Feb, 2011.
- "Kmart ups OfficeMax stake"[dead link]. Discount Store News. FindArticles.com. 18 Feb, 2011.
- Laura Liebeck "OfficeMax moves headquarters; acquisitions help expansion"[dead link]. Discount Store News. FindArticles.com. 18 Feb, 2011.
- "OfficeMax acquires BizMart; 3 major superstores remain"[dead link]. Discount Store News. FindArticles.com. 18 Feb, 2011.
- "Kmart opens largest power center - multistore Kmart complex opens in Utica, Mich"[dead link]. Discount Store News. FindArticles.com. 18 Feb, 2011.
- "Sports Authority OfficeMax shares on the block; Kmart spin-offs could raise $700M"[dead link]. Discount Store News. FindArticles.com. 18 Feb, 2011.
- "Kmart reveals details of specialty chain stock sale". Discount Store News. FindArticles.com. 18 Feb, 2011.
- 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.
- Teresa Andreoli Feb, 2011. "Furniture: the next mass superstore star". Discount Store News. FindArticles.com.
- 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.
- Richard Halverson "Mass market goes on line; Service Merchandise, OfficeMax tap cybersales - retailing on computer networks". Discount Store News. FindArticles.com. 18 Feb, 2011.
- Jim Silver "Kmart to Sell OfficeMax Stake, Raising About $347.9 Million". Journal Record, The (Oklahoma City). FindArticles.com. 18 Feb, 2011.
- "OfficeMax charges ahead with test of full-service battery kiosks: files suits against retailers for using 'Max' name - BatteryMax". Discount Store News. FindArticles.com. 18 Feb, 2011.
- Laura Liebeck "OfficeMax sets overseas itinerary". Discount Store News. FindArticles.com. 18 Feb, 2011.
- "OfficeMax plans California blitz - expansion". Discount Store News. FindArticles.com. 18 Feb, 2011.
- "Office chains at work on international inroads and ancillary services - includes industry outlook - The DSN Top 200". Discount Store News. FindArticles.com. 18 Feb, 2011.
- "Office superstore expansion in high gear". Discount Store News. FindArticles.com. 18 Feb, 2011.
- "Office superstore chains plan 9 million sq. ft. of new space in '98". Discount Store News. FindArticles.com. 18 Feb, 2011.
- "Office Supply Chains Foresee Continued Expansion". Discount Store News. FindArticles.com. 18 Feb, 2011.
- "OfficeMax reveals plans at shareholders meeting". Discount Store News. FindArticles.com. 18 Feb, 2011.
- Mike Troy "OfficeMax unveils new prototypes". Discount Store News. FindArticles.com. 18 Feb, 2011.
- "OfficeMax to get $129 mln from Boise Cascade's IPO", Feb. 12, 2013. marketwatch.com
- "Office Depot, OfficeMax to Merge to Compete With Staples". Bloomberg. Retrieved 20 February 2013.
- "Office Depot and OfficeMax Complete Merger". MarketWatch. November 5, 2013. Retrieved November 11, 2013.
- Fine, Arlene (November 18, 2011). "OfficeMax … in the beginning". Cleveland Jewish News (Beachwood, Ohio). Retrieved October 18, 2013.