Advance Auto Parts is set to close over 500 retail outlets and additional 200 independent stores in a bid to turn around its failing operations.
Based in North Carolina, the company announced on Thursday that these closures are part of a broader strategic initiative aimed at enhancing business performance. The decision entails shutting down a total of 523 of its corporate stores and four distribution centers, while also exiting 204 independent locations, all targeting completion by mid-next year.

However, the company has not provided specific details on which locations will be affected or the number of employees who might lose their jobs as a result of these changes. A representative from Advance Auto opted not to offer further comments on the situation.

In its announcement, Advance Auto also revealed some of its plans for recovery, despite the extensive store closures. The company expressed ambitions of increasing new store openings and transitioning to a more standardized operating model. Additionally, it is working on consolidating its supply chain, acknowledging that associated costs would arise from turning some stores and distribution centers into “market hubs.”

The third-quarter results shared by Advance Auto show a loss of $6 million against revenues of $2.15 billion. This report comes as part of the company’s adjustments, which included a downward revision of its full-year revenue forecast for the second time in a row.

The retailer, known for its range of products including car batteries and motor oil, has been facing a decline in sales since the beginning of the year and is taking measures to reinforce its financial situation. Earlier this month, the company finalized the $1.5 billion sale of its automotive parts wholesale distribution segment, Worldpac, to investment firm Carlyle.

Advance Auto’s operations are primarily concentrated in the U.S., although it also maintains some corporate and independent stores in Canada, Mexico, and various Caribbean regions. As of October 5, the company managed more than 4,780 stores, along with 1,125 independently operated Carquest-branded locations.

On Thursday, shares of Advance Auto saw a slight increase of less than 1%, although its stock has dropped by 33% since the start of the year.