Global news: Staples lays off 500 staff and big US distributor sold
Business division joins retail outlets on chopping block
US office supplies business Staples has reportedly laid off around 500 staff as the company recalibrates its operations in the wake of the COVID-19 pandemic.
OPI reports that many of the latest redundancies involve staff at the Staples Business Advantage division. These follow previously announced staff cuts across the company’s retail operations.
Past and present Staples employees have been active on social media with comments on the company’s current management and performance.
One anonymous current employee posted the following: “50+ stores in Canada to close in 2020 and more than 400 in the US. Some key vendors pulling back product offerings as they assess their appetite for risk. China private label office under scrutiny to produce product winners or shut down. 4th quarter numbers are scary. Amazon feasting on the carcass.”
Meantime, Staples recently announced a collaboration with Instacart to launch same-day delivery from more than 1000 of US retail locations.
In a statement, Staples said: ‘The partnership offers customers a safe and convenient way to shop for an assortment of products from trusted brands ranging from home office essentials to back-to-school necessities, and most importantly, cleaning supplies and PPE to accommodate increased safety needs amidst COVID-19’.
Large US office products distributor sold to investor group
Genuine Parts Company has completed the sale of its S.P. Richards operations through two separate transactions.
The company has sold S.P. Richards' core US operations to an investor group led by industry professionals and has sold S.P. Richards' Supply Source Enterprises business, comprised of The Safety Zone and
Impact Products operations, to an affiliate of H.I.G. Capital.
S.P. Richards is a national business products wholesaler that distributes more than 98,000 products to 9000 resellers and distributors throughout the US from a network of 44 locations.
Yancey Jones, on behalf of the Investor Group, said, "Our group comprises several industry leaders who envision a new, industry-changing alignment and partnership among manufacturers, wholesalers and resellers. This represents a shift in the traditional industry supply chain that will eliminate redundant costs and help all partners become more competitive. The acquisition of S.P. Richards' core US operations represents a major step forward in this process, and we are focused on strengthening our mutually beneficial partnerships and driving long-term, sustainable value creation."
Date Published:
30 June 2020