News Summary

Advance Auto Parts is set to shut down all its 137 locations across California by mid-March 2025 as part of a restructuring plan to address financial struggles. The move comes after a reported $820 million operating loss in late 2024, leading to over 1,600 job losses. The closures are part of a nationwide strategy to eliminate more than 725 stores, aiming to streamline operations and stabilize finances. As the company consolidates distribution centers and plans to open new locations, the immediate impact on local customers and communities remains significant.

Major Changes Ahead for Advance Auto Parts in California

Fresno, California – It’s a tough time for auto parts lovers in the Golden State as Advance Auto Parts gears up to close all its locations in California by mid-March 2025. This unfortunate news is part of a larger restructuring plan aimed at addressing the company’s financial woes. It’s a significant shift in the landscape for auto repairs and parts provisioning in the region, and many are left wondering how it will affect them.

What’s Happening?

Advance Auto Parts, a popular choice for car enthusiasts and everyday drivers alike, operates a total of 137 locations in California. But as part of its initiative to save the company from considerable losses, all these stores will soon be shutters-down, resulting in over 1,600 job losses. This announcement came through a federal WARN notice, which gave employees a heads-up of 60 days to brace themselves for this life-altering change.

Behind the Scenes

So, what’s led to this drastic decision? Well, it seems to stem largely from the company’s reported operating loss of a staggering $820 million in the fourth quarter of 2024. That’s a hefty sum, and the folks at the top felt compelled to make some major moves. To ensure its long-term survival, the company is looking to reinvent itself, transitioning into a more streamlined operation.

How Is This Going to Unfold?

Store closures kicked off in early February and will continue through mid-March. The plan doesn’t just stop with these California locations. Nationwide, Advance Auto Parts is looking to close over 725 locations. That represents quite a shake-up in the auto parts market, and as the closures roll out, affected workers are slated to receive severance pay and outplacement services to help them transition.

What’s Next for Advance Auto Parts?

In a bid to stabilize finances and respond to the shifting market demands for auto repairs, the company is not just cutting back on stores. They’re also consolidating distribution centers and plan to operate just 12 large facilities by the close of 2026. Additionally, plans are in place to open 60 new market hub locations by mid-2027. While this may sound promising, it doesn’t erase the immediate impact on local communities, who will lose a critical resource.

The Bigger Picture

The restructuring isn’t exclusive to locations in California. Advance Auto Parts also intends to exit markets in other states like Oregon, Washington, Nevada, and Arizona, which signals big changes for many auto part shoppers nationwide. To aid in the transition, inventory liquidation efforts began as early as November 2024, impacting both corporate and independent stores across different areas.

Responses from the Market

With these announcements, it’s no surprise that investor concerns have also emerged. After a drop in sales guidance, there was an 18% drop in stock value, reflecting widespread worries about the company’s future. However, even amidst the turbulence, Advance Auto Parts is committed to enhancing core retail improvements aimed at achieving consistent, profitable growth down the line.

Final Thoughts

This is undeniably a tough chapter for Advance Auto Parts and its employees, as well as auto repair enthusiasts across California. The coming weeks will be critical for those affected as they navigate this challenging transition, but it’s hoped that these transformative actions will steer the company towards a stronger and more stable future.