Advance Auto Parts has unveiled plans to shut down 500 corporate stores and exit 204 independent locations by mid-2025 as part of a nationwide restructuring initiative. While the company operates seven stores in the Los Angeles area—including in Culver City, Inglewood, and Redondo Beach—the specific impact on California locations remains unclear.
The restructuring aims to address financial challenges in the automotive sector, including inflation and competition from lower-cost vehicle parts. Company executives also pointed to external pressures such as hurricanes and a recent CrowdStrike outage that disrupted operations. Despite a reported adjusted loss of 4 cents per share for the third quarter, the company’s stock rose 4.5% following the announcement, signaling investor confidence in the plan.
The Advance Auto Parts shutdown and restructuring is estimated to cost between $350 million and $750 million but projects a significant boost in operating income margins by fiscal 2027.
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