ODP Joins The Trend Of Selling Corporate Headquarters; Aims For Cost Cuts

ODP Corp ODP has entered into a definitive agreement for a sale and partial leaseback of its Boca Raton-based corporate headquarters. The details of the transaction were not disclosed.
Upon completion of a sale, ODP expects to lease a portion of the building's office space from the new owner.
The place will also continue to remain as the company's headquarters for a minimum of two years.
Related: Lyft Joins The Likes Of Amazon To Sublease Offices To Curb Costs: Report
"This transaction provides us with greater flexibility and lowers our annual operating costs," said CFO Anthony Scaglione.
As of June 25, 2022, ODP had total available liquidity of $1.4 billion, consisting of $417 million in cash and equivalents and $953 million of available credit. Total debt was $194 million.
For 2Q22, cash used in operating activities from continuing operations was $(114) million.
The company plans to provide additional details of the transaction after the closing, which is expected by 2022 end.
Price Action: ODP shares are trading higher by 0.28% at $35.94 on the last check Wednesday.

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