When you hear news of hundreds of store closures, it’s natural to worry that a major brand is collapsing. If you’re a small business owner, the phrase “going out of business” probably grabs your attention—and maybe your anxiety, too. So where does Advance Auto Parts really stand? Let’s look at the facts and what they mean for you.
Overview: Advance Auto Parts and Recent Changes
First, it’s important to understand what’s actually happening. Advance Auto Parts has not announced bankruptcy or a complete shutdown. What they have done is launch a major restructuring effort, announced in late 2024, with the goal of improving profitability and setting up for long-term growth.
The company faced sluggish sales and rising costs, so leadership decided to make a series of hard calls. These include closing weaker stores, selling off side businesses, and focusing efforts where results look strongest.
Think of this move as a business “reset”—stepping back, trimming what’s not working, and doubling down on best opportunities. It’s a playbook you might use yourself: analyze what’s underperforming, shift resources, and invest where demand is strong.
Their leadership says this isn’t about giving up. It’s about getting leaner, operating smarter, and building a more competitive company for the next decade.
Details of Store Closures: How Many, Where, and Why?
Let’s talk numbers. Advance Auto Parts closed around 700 stores in the U.S. as part of this turnaround. Here’s the detailed breakdown:
- 523 corporate-owned Advance Auto Parts stores closed
- Roughly 200 Carquest and franchise (independent) stores shuttered
- 4 distribution centers, vital for logistics, will close by mid-2025
In total, that’s “more than 700” locations. This is a big number but consider the scale—at the start of the year, the company operated nearly 4,800 outlets nationwide. Now, post-closures, you still see about 4,000 corporate stores and over 900 independently operated Carquest stores across the U.S., Mexico, Canada, and the Caribbean.
Most closures happened in markets where sales lagged, costs ran too high, or competition proved too tough. All California locations closed, as well as several in other Western states—the company chose to exit those regions entirely due to chronic underperformance. If you lived or did business in one of those areas, it’s easy to think “they’re gone.” But across much of the country, Advance Auto Parts remains very visible and open for business.
Financial Health and Future Plans: Still in the Race
After this phase of closures, is Advance Auto Parts shrinking without plans for growth? Not at all.
Company filings show they are stabilizing, with thousands of stores still operational and plans to selectively expand. Here’s what you should know:
- Advance Auto Parts currently runs about 4,000 U.S. stores, plus additional locations internationally.
- Over 900 Carquest stores are independently operated and supported by the brand.
- The business plans to open at least 30 new stores in 2025 across states like Ohio, Virginia, Illinois, Florida, and Wisconsin.
- More than 100 new locations are in the pipeline for opening by 2027—including larger “market hub” stores designed to serve broader regions.
For business owners, this sends a clear message: Advance Auto Parts is consolidating before growing again. This pivot could even present partnership or local supply opportunities, depending on where you operate.
Why So Many Closures? Understanding the Business Move
Why not just wait out the market? Executives gave several reasons for shutting down so many stores:
- Car part sales are less predictable due to changes in driving patterns, vehicle lifespans, and even extreme weather.
- Some markets—such as California—became too costly and competitive, with stores routinely missing targets.
- The company set aggressive profit improvement targets, aiming to boost its operating margin by over 500 basis points by 2027.
When you own a business, there’s no easy way to cut so many locations—but ignoring underperformance can be much worse. If a store is eating into your profits, sometimes closing it means living to fight a better battle elsewhere.
Anecdotes from franchise owners suggest some weren’t surprised. Competition from digital-first retailers and big box chains made certain regions tough places to thrive. This is a challenge many of you face in your own markets—knowing when to double down and when to step aside.
Key Restructuring Actions: Not Just Store Closures
Advance Auto Parts did more than close doors. Here are the other major steps in the plan:
- The company sold its Worldpac subsidiary—a wholesale B2B business—to Carlyle Group for $1.5 billion, freeing up resources to focus on retail.
- Financial performance is improving. Operating losses are shrinking, with recent quarterly results showing smaller losses compared to last year.
- Leadership has publicly committed to using this breathing room to modernize supply chains, improve customer experience, and drive faster local delivery.
These choices echo strategies successful business owners often use—selling off distractions, clearing up debt, and zeroing in on the core business.
Addressing “Going Out of Business” Rumors and Local Panic
Why are so many people convinced the company is shutting down? It’s a textbook case of perception versus reality.
Seeing dozens of “Store Closing—Everything Must Go!” signs in your town feels alarming. Closed stores make headlines, while stable performance at thousands of other locations does not. Locals, especially those in states where Advance exited completely, naturally wonder if the whole chain is folding.
But here’s the true story:
- Advance Auto Parts is not filing for bankruptcy.
- This is a restructuring—a reset to stabilize finances and spark new growth.
- Store closures are selective, aimed at underperforming and low-growth areas.
If you run a retail business yourself, you know how closing even one location can set off rumors. But large companies often “prune” to strengthen their core. For example, Starbucks regularly repositions underperforming shops, only to open new ones in higher-traffic spots.
Media sources consistently state that this is not a wholesale exit from the market. Social posts, too, report employees and managers telling customers, “No, we’re not going out of business—just closing select stores and moving our resources.”
What This Means for Small Business Owners and Local Professionals
If you work with, supply, or depend on Advance Auto Parts, you need to plan for changes:
- In markets where stores have closed, consider alternate suppliers and update your parts sourcing map.
- If you’re in an area getting new stores, explore partnership or referral programs—Advance often works with local service shops.
- Watch the company’s quarterly reports to track turnaround progress. Use lessons from their approach—when is it time for you to shut or relocate part of your operation?
It’s important to study turnaround stories even if you’re not in retail. Whether you run a café or manage a distribution business, knowing when to consolidate, re-invest, or pivot your business model can help you stay profitable and reduce risk.
For more actionable tips on adapting your own business strategy, check out this guide for growth-minded leaders.
The Bottom Line: Advance Auto Parts Remains a Major Industry Player
To put it simply, Advance Auto Parts is not going out of business. The headline news of “700 stores closed” tells only part of the story. This is a deliberate, well-planned move to redirect resources, focus on profitable regions, and reset for future growth.
You can expect the company to keep:
- Operating thousands of stores nationwide and internationally
- Pursuing new store openings in targeted states through 2027
- Experimenting with new retail formats and market hub stores to better serve changing customer needs
If you’re watching this story, use it as a reminder: adapting to market shifts is critical if you want your business to last. Sometimes, this means tough calls—like closing doors or exiting markets. But the right strategic reset can position any company, large or small, for a stronger comeback.
Don’t forget to analyze your own business’s store-by-store performance every quarter. You could use the Advance Auto Parts playbook—trimming what’s not working, reallocating to growth markets, and never being afraid to try a new approach. This can help you stay nimble, reduce risk, and build a business that lasts through any economic shift.
Keep watching for more changes from Advance Auto Parts. But for now, you can confidently say: they are staying in the fight, with their eyes set on long-term success.
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