FedEx works the KinkoÆs out
FedEx Corp. paid $2.4 billion in 2004 for the chain of copy and print-service providers called Kinko’s. It rebranded the chain FedEx Kinko’s, and expanded it from 1,200 to 1,900 stores.
Monday it said it has decided it doesn’t like the name and will rename chain FedEx Office.
The company said this would allow it to “record a charge of approximately $891 million ($696 million, net of tax, or $2.22 per diluted share) in its fiscal fourth quarter, which ended May 31,” as a result of the decision.
It said the charge would be predominately for one-time, non-cash impairment charges associated with the decision about the use of the Kinko’s trade name and goodwill resulting from the Kinko’s
“The name FedEx Office more accurately represents our broader role of providing superior information and services through our company-owned, digitally connected locations around the world,' said Brian D. Philips, president and chief executive officer of FedEx Office. 'We are a back office for small businesses and a branch office for medium to large businesses and mobile professionals.”
FedEx said it is reducing future capital commitments by slowing the rate of expansion of Kinko’s from about 300 locations in fiscal year 2008 to about 70 in fiscal 2009.