FedEx Corp. (Memphis, Tenn.) will change the name of its struggling Kinko’s printing and professional services unit to FedEx Office, a move that will result in a charge of nearly $900 million.
“The FedEx Office name better describes the wide range of services available at its retail centers and takes full advantage of the FedEx brand long recognized for excellent customer service, quality and reliability,” a company spokesman told The Associated Press.
The charge relates to a decision about the use of the Kinko's name and a write-down of the value of its acquisition of the brand.
Earlier this year, the company reduced future capital commitments by slowing the rate of expansion from about 300 locations in fiscal year 2008 to about 70 in fiscal 2009.
FedEx bought Dallas-based Kinko’s in 2004 for $2.4 billion.