NEW YORK (AP) — Advance Auto Parts is closing more than 500 stores and divesting another 200 independently owned locations as part of its efforts to revive the struggling company.
North Carolina-based Advance Auto said Thursday it would reduce its U.S. footprint as part of a “strategic plan to improve business performance.” The company said it will close a total of 523 Advance corporate stores, as well as four distribution centers, and exit 204 independent locations by the middle of next year.
Specific locations and the number of employees expected to be affected were not immediately disclosed. An Advance Auto spokesperson declined to comment further.
Advance Auto outlined some broader turnaround efforts in Thursday’s announcement. Despite these extensive closures, the company noted goals such as “accelerating the pace of new store openings” and implementing a standardized business model. And it pointed to supply chain consolidation plans, noting that it expected to incur costs associated with converting certain stores and distribution centers into “market hubs.”
Advance Auto on Thursday posted a $6 million loss in the third quarter on revenue of $2.15 billion. The company also lowered its revenue outlook for the second consecutive quarter.
The seller of car batteries, motor oil and more has seen some declining sales since the start of the year and is making efforts to strengthen its balance sheet. Earlier this month, the company completed a $1.5 billion sale of auto parts wholesaler Worldpac to investment firm Carlyle.
Advance Auto operates primarily in the US, but also has some corporate stores and independent locations in Canada, Mexico and several Caribbean islands. As of October 5, Advance Auto operated more than 4,780 stores and served 1,125 independent Carquest locations.
The company’s shares closed down less than 1% on Thursday, but the stock is down 33% year to date.
