The American auto parts chain Advance Auto Parts has announced it will close 727 stores and four logistics centers as part of a strategy to avoid bankruptcy.
According to a report by Boosted, the closures are set to take place by the end of 2027.
This drastic measure is part of a new financial plan aimed at stabilizing the company’s economy and ensuring long-term survival.
The decision comes after yet another disappointing quarterly report. Although gross turnover increased by 11%, operating costs also rose, and total revenues declined, exacerbating the company’s financial woes.
Advance Auto Parts operates an extensive network of stores and distribution centers across the United States.
According to the company, 523 stores will be shuttered in 2025 alone, along with withdrawal from 204 locations, though the exact meaning of "locations" remains unclear.
In a press release, CEO Shane O’Kelly stressed the need for a clearer strategic direction: “We are now creating a new three-year financial plan with a focus on carrying out core activities within retail and improving productivity all around.”
As part of this plan, the company will also close four distribution centers, consolidating its logistics operations into 13 larger centers by 2026.
Stock Performance and Industry Trends
Following the latest earnings report—which fell short of expectations—Advance Auto Parts’ stock dropped 5%. This marks the second consecutive quarter the company has revised its annual earnings projections downward.
The exact number of employees affected by the closures has not yet been disclosed.
These layoffs come amid widespread workforce reductions in the automotive industry. For instance, General Motors announced last week it would lay off an additional 1,000 employees, bringing its total layoffs for 2024 to nearly 5,000 workers.
Advance Auto Parts hopes that its aggressive restructuring plan will allow the company to regain financial stability and avoid bankruptcy.
