Office Depot, Inc. (NASDAQ:ODP) had recently revealed that Roland Smith will retire from his position as CEO in fulfillment of a three-year contract. He will immediately step down from the office as soon as his successor will have been names. Nonetheless, he will remain as the company’s Chairman.
Failed Staples, Inc. (NASDAQ:SPLS) Acquisition
Smith’s retirement as the Office Depot CEO follows the unsuccessful $6.30-billion merger of Office Depot and Staples due to the opposition of the US Federal Trade Commission (FTC). This marks the second time that the US FTC hampered the proposed merger. The antitrust body believes that the merger of two office supplies industry giants does not favor healthy market competition. Following the release of the court ruling favoring the US FTC, the two companies no longer appealed to the court for reconsiderations. As a result, both Office Depot and Staples are struggling to strengthen their respective positions in the industry through cost-cutting measures.
Sargent’s Retirement from Staples
Ron Sargent, Staples CEO, has also left his post in June. Consequently, Shira Goodman, Staples President of North America Operations, has been named as the interim CEO for the time being.
Previously, Goodman had also served as the company’s President of North American Commercial and Head of Supply Chain and Customer Services Operations in North America. Currently, she is a CarMax, Inc (NYSE:KMX) Board of Directors member.
Office Depot’s Leadership Changes
Aside from the prospective retirement of Smith as the company’s CEO, Office Depot has also revealed a number of changes in its executive committee.
Troy Rice, Office Depot Executive Vice President (EVP) of Retail, has been named as the new Chief Operating Officer (COO) of North America. Under the newly-created office, Office Depot will be consolidating retail, marketing, ecommerce, and contract operations into one. Moreover, Rob Koch, Office Depot Senior VP (SVP) of Real Estate, has been given additional responsibilities as the new EVP of Business Development.
On the other hand, Steve Calkins, Office Depot EVP of Contract, has been appointed as EVP and Chief Legal Officer to replace Elisa Garcia. Calkins was promoted to take on the heavier responsibilities since he had already served as the company’s VP and Deputy General Counsel previously.