Chief executive resigns amid sluggish sales

Monday, Oct. 4, 2004 | 9:18 a.m.

Office Depot Inc., the world's No. 2 office-supplies retailer, said Bruce Nelson resigned as chairman and chief executive after four years of struggles to boost sales. Director Neil Austrian was named interim chief executive while the board conducts a search for a new leader.

"The board felt a change was required," spokesman Brian Levine said, adding that the change was intended to "jumpstart growth." Delray Beach, Fla.-based Office Depot, which has 901 stores in North America, said it expects to hire a new executive early next year.

Office Depot warned last month that third-quarter profit would be less than expected because of sluggish back-to-school sales, hurt by recent hurricanes. Staples Inc. passed Office Depot three years ago as the industry leader and has increased sales about twice as fast as its rival under Nelson.

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