DOW JONES NEWSWIRES
OfficeMax Inc. (OMX) has hired Aramark Corp. (RMK) executive
Ravi Saligram as president and chief executive, succeeding Sam
Duncan, who will step down as chairman, president and CEO,
effective Nov. 7.
Duncan, who in February said he planned to retire a year later,
will continue working as a special adviser to the office-products
retailer until Feb. 28.
Lead director Rakesh Gangwal was named non-executive chairman,
effective Nov. 8.
Saligram, 54, most recently served as president of Aramark
International and chief globalization officer of the food-service
company. Before joining Aramark in 2003, he worked at
InterContinental Hotels Group PLC (IHG) and SC Johnson Wax.
OfficeMax Chief Operating Officer Sam Martin left in July to
become chief executive of Great Atlantic & Pacific Tea Co.
(GAP). Duncan took on the operating chief's responsibilities,
saying the company did not expect to fill the job at that time.
Martin later hired Paul Hertz, who was responsible for OfficeMax's
U.S. retail operations, to join him at A&P.
Duncan joined OfficeMax, the No. 3 office products supplier by
sales behind Staples Inc. (SPLS) and Office Depot Inc. (ODP), five
years ago, when shares were more than twice their current level. He
has been instrumental in helping the company begin a turnaround,
shrinking the size of the retail chain.
In August, OfficeMax posted an unexpected second-quarter profit,
but it reversed its position that the economy will improve in the
second half of this year, predicting third-quarter sales slightly
below a year earlier and cutting its 2010 sales view.
OfficeMax competes not only with Staples and Office Depot but
also with discount retailers Wal-Mart Stores Inc. (WMT), Target
Corp. (TGT) and dollar stores.
The office-products sector has been struggling because of high
unemployment rates, especially among white-collar workers.
OfficeMax's shares closed at $16.03 and were inactive after
hours.
-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357;
Kathy.Shwiff@dowjones.com