Staples is Reportedly Exploring a Sale
Office supplies retailer Staples is in preliminary talks with a number of private equity firms for a potential sale. Reports say Staples started to look for buyers after its much anticipated merger with Office Depot fell through. Both companies faced heavy regulatory resistance over the proposed merger, which culminated in a federal judge blocking the deal. In May 2016, both companies announced they would move forward with different business strategies.
Total Retail's Take: Upon the news of a possible sale, Staples’ stock price rose nearly 10 percent. The retailer has struggled significantly over the last year and half, and finding a private buyer may help stabilize the business — at least seemed to think so. Last month, Staples said it would close 70 stores across North America by the end of 2017 due to failing sales. A sale to a private equity firm would likely lead to more cost-cutting moves and potential job losses as it seeks to return Staples to profitability.