Essendant sells office supply brands amid financial struggles

Vibrant selection of laundry detergents on a supermarket shelf, showcasing brands and variety. Photo: Kenneth Surillo/Pexels

Essendant completed the sale of its private-label janitorial and facility supply brands, Boardwalk, Gen, and Windsoft, to ORS Nasco, finalizing its withdrawal from the office products distribution sector. The transaction comes amid ongoing financial difficulties, including an unresolved lawsuit from TD Synnex over alleged unpaid obligations under a prior settlement agreement and WARN Act notices indicating potential workforce reductions as part of broader restructuring efforts.

The move reflects Essendant’s earlier strategic shift away from traditional distribution toward digital commerce initiatives. However, recent financial filings and layoff warnings indicate that liquidity concerns now dictate the company’s priorities.

In a LinkedIn statement, CEO Kevin Short described the acquired brands as “well-established and trusted,” stating they would complement the distributor’s goal of providing a unified purchasing solution for customers. Essendant declined to comment on the transaction.

Private-label brands such as those sold are often among the most valuable assets a distributor can sell, as they deliver strong profit margins without relying on manufacturer pricing or detailed supply networks. Joel Goldstein, president of Mr. Checkout Distributors, explained that such sales frequently mark a distributor’s complete exit from a market rather than a tactical adjustment.

The pending litigation with TD Synnex adds further complexity to Essendant’s situation. Goldstein noted that ongoing legal disputes can force accelerated asset sales, often at reduced valuations, since buyers recognize the seller’s urgency.