After failed merger Office Depot CEO to retire

The fallout of Office Depot's failed $6.3 billion merger with Staples continues.

Office Depot said Monday that CEO Roland Smith will step down from his role by the end of the first quarter of 2017.  That announcement comes just a few months after Staples and Office Depot called off their merger following antitrust concerns from federal regulators.

Smith, 62, has been with Office Depot since November 2013 under a three-year contract, helping to oversee Office Depot's $1.17 billion merger of OfficeMax that occurred that same year.  He will remain as Office Depot's chairman of the board.

“My decision to retire has not been an easy one," said Smith in a press release statement. "In 2013, I set aside a number of personal ambitions to accept a three-year contract with Office Depot, and it’s now time for me to refocus on those priorities.”

Smith's retirement comes amid a broad shuffling of Office Depot's management team. Mark Cosby, the company's president of North America, will be in charge until a new CEO is named.  At that time, the president and CEO roles will be consolidated.

Smith's departure will follow the exit of former Staples CEO Ron Sargent, who left the company in June following the failed merger bid.

While it swung to a profit this past quarter, partially due to a $250 million breakup fee paid by Staples, Office Depot has struggled since the merger was blocked on May 11.  Earlier this month the company announced it would close hundreds of stores and said it is contemplating a European exit to cut costs.

The stock moved little on Monday, closing up less than 1% at $3.53.

Follow Eli Blumenthal on Twitter @eliblumenthal