Office Depot has walked away from a contract potentially worth over $500 million in annual revenue, but might be better off without it and could actually have bought itself one more year of the revenue.
Friday, Office Depot said it wouldn’t submit a bid in Los Angeles County related to the U.S. Communities Government Purchasing Alliance, a cooperative that aims to secure good terms for supplies that local and state governmental agencies need. Office Depot has had the contract since 1996, and it represented roughly $600 million, or 5%, of its 2009 sales. By backing out of the bidding process, and with a dearth of large bidders, the cooperative has the option to cancel the bid and renew the existing contract for the 2011 year. … Continue Reading
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