Office Depot
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Office Depot (NYSE: ODP) is a supplier of office products and services. The company's selection of brand name office supplies includes business machines, computers, computer software and office furniture, while its business services encompass copying, printing, document reproduction, mailing and shipping. An S&P 500 company, Office Depot generates revenues of over US $14 billion annually and has 42,000 employees worldwide. It is headquartered in Boca Raton, Florida.
Office Depot was founded in Lauderdale Lakes, Florida (near Fort Lauderdale) in 1986 by three partners: Pat Sher, Stephen Dougherty, and Jack Kopkin. Sher, the company's first CEO, died the next year from leukemia. Sher's estate donated the proceed of his life insurance policy to help the fledgling company meet its payroll. The company retained professional executive recruiters (so-called "headhunters") to find a replacement for Sher. David Fuente, formerly an executive with Sherwin-Williams, was selected as the new chairman and CEO.
Fuente immediately launched an aggressive nationwide expansion program. To finance it, he arranged for an initial public offering of stock in 1988. In 1991, Office Depot expanded to the West Coast region with the purchase of competitor Office Club. By 1993, it was operating over 350 stores in the U.S. and Canada. This acquisition moved Office Depot onto the national stage. Mark Begelman, founder and president of Office Club, joined Office Depot as president and chief operating officer.
Office Club stores were slated to continue operations under the Office Club brand and operate as a subsidiary of Office Depot. This was because Office Club operated under a "Membership format" (similar to what is currently employed by Costco and Sam's Club) and the company was at first reluctant to part with that. Within a year of the merger, Office Club stores dropped the membership format and became fully assimilated with Office Depot.
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Filed under: Office Supplies
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