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Advance Auto Parts to Close All California Stores Amid Restructuring Efforts
In a significant shift for the automotive retail landscape, Advance Auto Parts has announced plans to close all remaining locations in California by mid-March 2025. This decision is part of a larger restructuring initiative aimed at addressing ongoing financial struggles within the company. The announcement was made in November through a federal WARN notice, which provides affected employees with a minimum of 60 days’ notice to prepare for the impending job loss.
Advance Auto Parts
The ramifications of this closure will be profound, with more than 1,600 workers set to lose their jobs as Advance Auto Parts shuts down its remaining 137 stores across the state. The closures began in early February and will follow a broader consolidation strategy that impacts over 725 locations nationwide.
The decision to close these stores is largely driven by a significant downturn in consumer demand. According to the company, fewer drivers are opting for vehicle repairs, contributing to a challenging market environment. This trend was starkly illustrated in the company’s recent financial report, highlighting an operating loss of $820 million in the fourth quarter of 2024.
Shane O’Kelly, President and CEO of Advance Auto Parts, stated, “During 2024, we initiated transformative actions to reposition Advance for long-term success and value creation.” This statement underscores the urgency of the company’s restructuring efforts and its commitment to adapt to the market’s evolving landscape.
As part of its comprehensive plan, Advance Auto Parts intends to consolidate its distribution operations, reducing the number of centers to 12 larger facilities by the end of 2026. Furthermore, the company aims to open 60 market hub locations by mid-2027, which could potentially help streamline operations and improve efficiency in a challenging retail environment.
The closure of all California locations signifies a substantial change in the automotive parts sector, marking the end of an era for many consumers who have relied on Advance Auto Parts for their automotive needs. As the company navigates these changes, the goal remains clear: to emerge stronger and better positioned for sustainable growth in the years to come.
For employees and consumers alike, this transition brings uncertainty, but it also represents a critical phase of re-evaluation and adaptation in the face of shifting market demands. The coming months will be pivotal as Advance Auto Parts implements its restructuring plan while supporting its affected workforce.
Related Link:
https://ktla.com/news/california/advance-auto-parts-store-closures/
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