Office Depot gets cash injection
Office Depot have been given $350 million from a private equity fund to help ease it through the current economic downturn. In March the shares hit a very low 59 cents, however they have now recovered to $3.89. This is still well below the $30 per share it is estimated the company paid when it bought $2 billion worth of it’s own shares.
The company has been effected during the recession by long leases on stores it no longer uses. It has been reducing overheads by selling property and cutting costs. BC Partners, the London based private equity company will give Office Depot some much needed financial flexibility. It will make relationships with suppliers easier to manage as well as cutting it’s dept to $200 million.