OfficeMax
| File:OfficeMaxLogo.svg | |
| File:OfficeMax Toledo.JPG An OfficeMax retail location in Toledo, Ohio (2013) | |
| Company type | Subsidiary |
|---|---|
| Industry | Retail |
| Founded | April 1, 1988 Cleveland, Ohio, U.S. |
| Founder | Bob Hurwitz Michael Feuer |
Number of locations | 941 (2021) |
Area served | United States Mexico (since 1996) New Zealand Australia (until 2020) |
| Products | Office supplies |
| Parent | Kmart (1991–1995) Boise Cascade (2003–2004) Office Depot (2013–present) |
| Website | www |
OfficeMax is a U.S.-based retailer specializing in office supplies, established in 1988. Prior to merging in 2013, it ranked as the third-largest office supply chain in the United States. Following the merger, it became a brand and subsidiary under Office Depot.
History
Founded on April 1, 1988, in Cleveland by Bob Hurwitz and Michael Feuer, OfficeMax began with Hurwitz as executive chairman and CEO and Feuer as president and COO. The company launched its first store on July 5, 1988, located in Mayfield Heights, Ohio. After Hurwitz’s departure in 1993, Feuer assumed the roles of chairman and CEO.
OfficeMax expanded rapidly through strategic acquisitions: in 1990, it acquired Office World, which included minority investors such as Montgomery Ward; then it obtained Office Square stores from Kmart in exchange for a 22% ownership stake. By 1991, Kmart had increased its shareholding to 92%. Additional growth involved purchasing five Highland Superstores sites in Boston and OW Office Warehouse outlets in Virginia during 1992. The company’s largest acquisition came in 1993 with the purchase of BizMart’s 104 stores.
The company also secured a 19% equity interest in Corporate Express, a contract stationery supplier. In May 1994, Kmart proposed divesting shares of its specialty retail subsidiaries to reduce debt and finance growth; however, shareholders rejected this plan. Later that year, OfficeMax piloted the FurnitureMax concept—a store-within-a-store format—in Cleveland.
In 1995, Kmart spun off OfficeMax as an independent public company listed on the NYSE under ticker OMX, relocating its headquarters to Shaker Heights, Ohio. This move enabled OfficeMax to concentrate on increasing market penetration and refining its retail strategy within the office supplies sector.
Public corporation
By 1995, OfficeMax embraced e-commerce early by launching sales through internetMCI. Around this period, Kmart divested its remaining 25% stake in the company. In 1996, BatteryMax kiosks operated by Batteries for Everything were introduced at selected locations.
To safeguard its brand identity, OfficeMax initiated legal actions against companies using “Max” in their names such as Med Max and Circuit City’s CarMax. Alongside rivals Staples and Office Depot, OfficeMax aggressively expanded to saturate the office supply market.
To improve distribution efficiency, the company established regional delivery centers and invested in large-scale PowerMax distribution hubs located in Las Vegas, Hazleton, and Birmingham after experiencing conflicts with prior logistics providers.
In 1998, OfficeMax experimented with a more compact store format called OfficeMax PDQ in Woodmere, Ohio. By 2001, it operated approximately 960 stores but began shuttering less profitable outlets to concentrate resources on stronger markets.
In a significant transaction during 2003, Boise Cascade Corporation acquired OfficeMax for $1.3 billion. The following year Boise Cascade divided its operations: selling wood and paper divisions to Madison Dearborn Partners while retaining the OfficeMax business under its own name.
By December 2012, OfficeMax maintained a network of 941 stores across 47 states plus Puerto Rico, the U.S. Virgin Islands, and Mexico. That year’s net sales totaled $6.9 billion—a decline from $8.3 billion recorded in 2008—reflecting ongoing challenges from market conditions and competitive dynamics.
Merger with Office Depot
On February 20, 2013, OfficeMax and Office Depot revealed plans for an all-stock merger, creating the largest office supply retailer in the United States. The agreement proposed that OfficeMax shareholders receive 2.69 shares of Office Depot stock for every share they held in OfficeMax. In May 2013, a shareholder lawsuit emerged contesting the merger, arguing that OfficeMax’s valuation was too low. In response, Office Depot scheduled a special meeting for shareholders after the SEC completed its review of the merger documentation.
The merger finalized on November 5, 2013. Following this, Office Depot established its global headquarters in Boca Raton, Florida, leading to the closure of the OfficeMax headquarters located in Naperville, Illinois. During the post-merger phase, many stores continued operating under the OfficeMax name, while others were either rebranded or shut down. The final OfficeMax retail location ceased operations permanently on May 16, 2015.
New Zealand branch closures
On August 26, 2020, OfficeMax declared it would shut all 14 of its New Zealand outlets to concentrate on expanding its online business. This move was driven by growing e-commerce demand and the challenges posed to physical retail by the COVID-19 pandemic.
See also
- Grand & Toy — Canadian subsidiary acquired in 1996