Home Depot closing stores, cutting back on its expansion plans

In another sign of continuing fallout from the housing downturn, Home Depot is out this morning with some news. The home improvement retailer said it is:

* Shutting 15 U.S. locations, a move that affects 1,300 workers (some of whom will be offered work at other locations). The move will result in a $186 million charge. The locations are scattered in various states, including Wisconsin, New Jersey, and Indiana.

* Scrapping plans to open roughly 50 stores that had been in its expansion pipeline. It will take a $400 million charge related to store development costs and other obligations.

* Total capital spending on new stores will drop by $1 billion over the next three years. Total capex for the current fiscal year will approximate $2.3 billion, compared with $3.6 billion in the previous year.