It was not that many years ago when the Federal Trade Commission (FTC) made it clear that Amazon was not seen as a major competitor to Office Depot and Staples.
“The Commission has reason to believe that the proposed merger between Staples and Office Depot is likely to eliminate beneficial competition that large companies rely on to reduce the costs of office supplies,” said FTC Chairwoman Edith Ramirez said in a press release. “The FTC’s complaint alleges that Staples and Office Depot are often the top two bidders for large business customers.”
In a court filing, the FTC explained that it did not believe Amazon would become a big enough player in office supplies to offset the loss of competition from allowing Staples and Office Depot to merge.
The survival of Staples’ proposed acquisition of Office Depot hinges on two critical issues: (1) the reliability of Plaintiffs’ market definition and market share analysis; and (2) the likelihood that the competition resulting from new market entrants like Amazon Business will be timely and sufficient to restore competition lost as a result of the merger.
The federal agency was specific in its belief that Amazon would not be a viable alternative later in the court brief.
Although Amazon Business may transform how some businesses purchase office supplies, the evidence presented during the hearing fell short of establishing that Amazon Business is likely to restore lost competition in the B-to-B space in a timely and sufficient manner.
That merger was eventually denied by the FTC and both Staples and Office Depot — which was recently purchased by Atlas Holdings, a private equity firm based in Greenwich, Connecticut — have essentially been in steady decline since then.
Office Depot closing more stores
“Amazon Business currently faces a multitude of challenges that prevent it from being on equal footing to the offerings of Staples and Office Depot,” the FTC shared in a 2016 court document.
While the FTC decision has not aged well, Office Depot has struggled to find its footing since the merger was denied. The company has been steadily shrinking since 2016. It has closed stores in 2025 and plans to close even more.
CEO Gerry Smith addressed the need for cuts during the chain’s final earnings call before being taken private.
We continue to make meaningful progress this quarter, further optimizing both our retail store operations and supply chain infrastructure to better serve customers and drive greater efficiency. Under the plan, we closed about 2 dozen retail stores and 3 distribution facilities in Q2. While there is more work ahead, we are on pace, and we’re confident that these efforts will lead to a more efficient operating model and drive margin improvement in the future.
The retailer plans to close around 60 total locations in 2025. Those plans, however, were made before the company was sold.
Office Depot 2025 store closures
- In Q1 2025, ODP closed 12 stores.
- In Q2 2025, ODP closed 23 stores.
- Combined through the first half of 2025, that’s 35 stores closed.
- According to their Q2 report, the reduction in store count contributed to having “60 fewer retail locations year-over-year.”
Source: investor.officedepot.com
Image source: Getty Images
What’s next for Office Depot?
Office Depot has closed over 1,000 stores since its 2013 merger, reducing its store count by about 55%.
The company, you can argue, had made some progress toward fixing its business.
“Net income from continuing operations and net diluted earnings per share were breakeven in the second quarter of 2025, up compared to net loss from continuing operations of $4 million, or ($0,12) per diluted share in the second quarter of 2024,” it shared in its second-quarter earnings release.
Office Depot shared some goals in the Q2 report, its final one as a public company.
Office Depot Q2 forecast:
- Top-line trend improvement at ODP Business Solutions in the second half of 2025, driven by improved performance in traditional product categories and expansion into hospitality
- Continued robust results in the consumer business, supporting strong cash generation throughout the second half of the year
- Generation of over $115 million in adjusted free cash flow for the full year 2025, as the Company executes its strategy and sharpens its focus on working capital management
“ODP Corporation being taken private with the Atlas Holdings deal signals a renewed focus on operational efficiency and a leaner cost structure for the office supplies company,” Total Retail reported.
There may be other benefits as well.
“Going private may enable ODP to make long-term investments in the business by freeing it from being so quarterly-earnings focused. These investments, whether in product, supply chain, marketing, real estate, etc., could help strengthen the business going forward,” the website’s Joe Keenan added.
Related: Major office supply retailer sold after it closed 1,000 stores
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