Sycamore Partners to buy Staples for $6.9 billion
An office supply chain is being bought out plus another airline announces flight cuts to Cuba.
Staples stock closed up on Wednesday, fueled by news that a private equity firm is buying the office supplies chain for $6.9 billion. Like other retailers, Staples has been hurt by the shift to online shopping. Amazon has become a prime competitor to staples for corporate customers. The deal with New York based Sycamore Partners will allow Staples to adjust to those challenges as a private company. The chain currently has about 1,600 stores, down from nearly 2,300 in 2012.
Southwest Airlines announced it will discontinue flights to two Cuban destinations. Service to Varardero and Santa Clara will end on September 4th, but the airline will continue to offer flights to Havana from Fort Lauderdale and Tampa. Southwest cited struggles to attract passengers as well as the continuing prohibition on tourism to Cuba for Americans.