The American chain of auto parts stores Advance Auto Parts is closing 727 stores and 4 logistics centers to avoid bankruptcy.
The American auto parts chain Advance Auto Parts has announced that it will close 727 stores before the end of 2027.
The initiative is part of a new strategy to ensure a stable economy and ultimately that the company avoids bankruptcy.
The closures come in response to yet another disappointing quarterly report. Because although the gross turnover increased by 11 percent, there was an increase in operating costs at the same time. While total revenues fell.
Advance Auto Parts, which can be compared to the Danish chain T. Hansen, but on a much larger scale, has an extensive network of stores and distribution centers in the USA.
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According to the company, 523 of its own stores will have to be closed in 2025 alone. Just as one will withdraw from 204 'locations'. What the latter covers, however, is not further elaborated.
In a press release, Advance Auto Parts' managing director, Shane O'Kelly, emphasizes that the company needs a clearer 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 round.
As part of the plan, Advance Auto Parts will also close four distribution centers, while the remaining will be consolidated into 13 larger centers by 2026.
Advance Auto Parts stock fell 5 percent following the release of its latest quarterly earnings report, which saw weaker-than-expected results.
According to CNN, this is the second quarter in a row that the company has lowered its expectations for the year's total earnings. It is not yet known how many employees will now lose their jobs.
Redundancies are generally lost in the car industry at the moment. On Friday morning last week, General Motors announced that it was laying off an additional 1,000 employees. Thus, the car group has fired almost 5,000 people in 2024 alone.
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