If you ran a business in the 1990s, there’s a good chance you were making regular pilgrimages to an office supply store. Back then, fax machines were still buzzing, Trapper Keepers were on every kid’s back-to-school list, and Staples, OfficeMax, and Office Depot were minting money hand over fist.
These specialty chains grew into national giants, filling a void that catalog sellers and mom-and-pop shops had left wide open.
But the internet giveth, and the internet taketh away. As e-commerce exploded and Walmart, Target, and Amazon turned copy paper and pens into low-margin commodities, the once-dominant office supply retailers saw their model crumble.
Now, after more than a decade of shrinking sales, mass closures, and survival pivots, one of the last giants just cashed out. On September 22, 2025, ODP Corporation — the company that absorbed Office Depot and OfficeMax — agreed to sell itself to Atlas Holdings in a $1 billion all-cash deal.
From Boom to Bust
The scale of the industry’s rise was staggering. In the 1990s, Staples, OfficeMax, and Office Depot opened thousands of stores, drawing in billions in sales and making early investors rich. By the mid-2010s, though, the handwriting was on the wall:
- OfficeMax merged with Office Depot in 2013 for $1.17 billion, combining nearly 2,000 stores.
- Analysts predicted 600 store closures. Instead, ODP shut down more than 1,000 locations, slashing its footprint by 55%.
- Staples was taken private in 2017 by Sycamore Partners for $6.9 billion, a recognition that Wall Street no longer believed in its growth story.
According to IBISWorld, office-supply store revenue has fallen at a 4% annual clip over the past five years, leaving the entire sector worth just $20.9 billion in 2025.
The Numbers Tell the Story
ODP’s decline is clear in its store count:
| Year | Store Count |
|---|---|
| 2013 | 1,912 |
| 2015 | 1,564 |
| 2017 | 1,394 |
| 2019 | 1,307 |
| 2021 | 1,038 |
| 2023 | 916 |
| 2024 | 869 |
Revenue fell in lockstep. After the OfficeMax merger, the combined company was generating $18 billion annually. By 2024, that had plunged to $7 billion.
Why Atlas Is Buying
For Atlas Holdings, a private equity firm with experience in turning around distressed businesses, ODP is a bet on wringing value from what’s left. Office Depot’s consumer stores still draw traffic, and its business-to-business operations have carved out niches in corporate procurement and hospitality supply.
But make no mistake: this is a turnaround play, not a growth story. Atlas is paying less than ODP spent on OfficeMax in 2013, a full-circle irony that underscores how much value has evaporated in just over a decade.
What It Means for Shareholders
Wall Street traders loved the exit. ODP stock jumped 33% on the deal news, rewarding short-term holders who bought in during the slump. But for long-term investors, the sale stings. Shares were trading above $50 in May 2024; Atlas is paying just $28 per share.
That’s a far cry from the golden years, when office supply chains were Wall Street darlings.
The Future of Office Supply Retail
What happens next is less about growth than survival:
- Atlas will likely continue closing underperforming stores.
- ODP’s business-to-business pivot could be the firm’s lifeline.
- Staples remains the only other national player, still private and wrestling with the same headwinds.
In many ways, the ODP sale closes the book on an era. The days of massive big-box office supply chains dominating strip malls are over. What remains is a slimmed-down, private version of a once-thriving industry — a reminder of how fast retail empires can rise, peak, and fade.
FAQs:
Why did ODP sell for only $1 billion?
Shrinking revenues, declining store counts, and relentless competition left the company far less valuable than in its heyday.
What happens to Office Depot stores now?
Most will stay open for now, but more closures are likely as Atlas restructures.
Is Staples still around?
Yes. Staples was taken private in 2017 but faces similar challenges to ODP.
