Archive for May 10th, 2007

Centro’s Structure

by David Bodamer May 10th, 2007

With the Centro/New Plan merger closing two weeks ago, Centro has unveiled its plans for streamlining operations.

For one thing, Watt Companies Inc. is out. Centro Properties Group and Watt have ended their joint venture thus Centro Watt will now be known simply as Centro.

New Plan CEO Glenn Rufrano, who is largely credited with righting New Plan’s ship after joining the company in 2000, will become Centro’s CEO of U.S. operations. A number of other top New Plan executives will remain with the firm including Michael Carroll, New Plan’s executive vice president of real estate operations, will be Centro’s U.S. executive vice president and COO, and Leonard I. Brumberg, New Plan’s executive vice president of portfolio management, who will retain that title with Centro.

Centro will also use a regional operating structure in the U.S. with eight offices located in Boston, Philadelphia, Atlanta, Orlando, Detroit, Chicago, Houston and Los Angeles.

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Staples, Office Depot Chasing OfficeMax

by David Bodamer May 10th, 2007

OfficeMax Inc., the third-biggest U.S. office-supplies retailer, may be a buyout target for rivals Staples Inc. or Office Depot Inc. in an industry “that only needs two large players,” a Credit Suisse analyst said.

The office-supply sector may follow supermarkets and department stores in consolidating as revenue growth slows, Gary Balter, a Credit Suisse analyst, said today in a research note.

OfficeMax last week reported first-quarter profit that trailed analysts’ estimates as sales in its stores fell for the fifth straight quarter. The company’s profit margins trail those of the larger Staples and Office Depot.

More here.

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