Dec. 10 (Bloomberg) -- Office Depot Inc. said it will close almost 10 percent of its North American stores and cut 2,200 jobs as the U.S. recession saps demand for business furniture, sending the shares up 9.1 percent.

The world’s second-largest office-supplies retailer said today in a filing that it will shutter 112 underperforming locations and six distribution centers in the next three months as it eliminates 4.5 percent of its workforce. The closings will reduce Office Depot’s North American sites to 1,163 from 1,275. Fourteen more stores will close in 2009 when their leases expire.

Office Depot posted losses or profit declines for the past six quarters as businesses stopped buying desk chairs and computers. Its sales and profit margins trail larger rival Staples Inc. Some investors have been concerned about the company’s future, said Dan Poole, senior vice president of equity research at National City Bank in Cleveland.

“Today’s announcement boosts cash flow in year one, which improves the company’s prospects for survival,” said Poole. His firm manages $34 billion, including Office Depot shares.

Planned new store openings for next year will be slashed in half to 20, reducing capital spending to less than $200 million in 2009, the company said. In October, Boca Raton, Florida-based Office Depot projected that it would spend $225 million in 2009. The moves will boost cash flow next year by $70 million.

Office Depot rose 22 cents to $2.65 at 4:06 p.m. in New York Stock Exchange composite trading. The shares have lost 81 percent this year, while Staples has fallen 22 percent.

$300 Million

The actions will trigger costs of $270 million to $300 million in the fourth quarter and in 2009 for continuing lease payments on closed stores, severance and liquidated inventory, Office Depot said. Other restructuring may take place, it said.

Forty-five locations will be closed in the central U.S., 19 in the West, eight in the South and 40 in the northeastern U.S. and Canada. Office Depot declined to release a list of specific store closures.

Staples eliminated 1,000 jobs in the third quarter at the unit that sells to companies as part of integrating Corporate Express, a Dutch office-supplies distributor, Chief Operating Officer Michael Miles said during a Dec. 2 conference call with analysts and investors.

Staples, which runs more than 2,000 locations worldwide, said it will open 60 stores in the U.S. and 15 in Canada next year, down from 107 in North America this year. It plans $400 million in capital spending in 2009, down from the $400 million to $500 million forecast in October.

-- Editors: Brad Skillman, Stefanie Batcho-Lino

To contact the reporter on this story: Heather Burke in New York at hburke2@bloomberg.net.

Last Updated: December 10, 2008 16:12 EST