Office Depot’s parent company, The ODP Corporation (NASDAQ:ODP) has announced that it will not divest its consumer business as previously planned.
After its review, the Board also decided not to resume the previously announced public company separation and to maintain its businesses under common ownership.
“Given current market and macroeconomic conditions, as well as the benefits of maintaining purchasing and supply chain synergies, the Board has determined that now is not the right time to further pursue separating the company into two independent, publicly traded companies,” said Joseph Vassalluzzo, chair of the Board of Directors of The ODP Corporation.
“However, the completion of our internal reorganization will make such a potential separation substantially simpler should the company determine to resume the separation process following a change of market conditions in the future.”
The ODP Corporation recently transformed its operations under its holding company structure into its B2C business and three B2B business and digital segments:
Office Depot, LLC – a provider of retail consumer and small business products and services distributed via approximately 1,000 Office Depot and OfficeMax retail locations and an eCommerce presence.
ODP Business Solutions, LLC – ODP’s B2B solutions provider serving small, medium and enterprise level companies.
Veyer, LLC – a supply chain, distribution, procurement and global sourcing operatoin. Veyer procures and distributes products for both Office Depot, LLC and ODP Business Solutions, LLC, as well as third-party customers.
Varis, LLC – ODP’s B2B digital platform technology business focused on transforming digital commerce between buying organizations and suppliers.