Is Advance Auto Parts Going Out of Business? The Full Truth Behind Closures and Restructuring

In recent months, many customers and investors have been asking: Is Advance Auto Parts going out of business? The question has spread widely due to headlines about large-scale store closures, restructuring announcements, and changes in the auto parts retail industry. To separate fact from speculation, let’s take a closer look at what’s really happening with Advance Auto Parts, why so many stores are shutting down, and what the future holds for this well-known automotive retail chain.

The Rumors: Why People Think Advance Auto Parts Is Going Out of Business

The conversation around Advance Auto Parts going out of business began intensifying in late 2024. Headlines reported that the company would close more than 700 locations nationwide, a move that shocked customers who rely on the retailer for affordable and accessible auto parts. For many, such large-scale shutdowns felt like a sign that the chain might be collapsing altogether.

However, while the closures are real, the rumors of bankruptcy or complete shutdown are misleading. Advance Auto Parts is not vanishing from the marketplace. Instead, it is restructuring its business model to cut costs and improve long-term performance.

What Is Actually Happening With Advance Auto Parts?

Major Store Closures

The company has already begun closing 523 corporate-owned stores, 204 Carquest-branded independent stores, and four distribution centers. These closures are part of a broader optimization strategy that should be completed by mid-2025.

Perhaps the most striking part of this plan is Advance Auto’s complete exit from California, where it closed all 139 of its stores. This move fueled speculation that the company was collapsing, but management has been clear that this is a strategic withdrawal, not a liquidation.

Sale of WorldPac Subsidiary

To improve its balance sheet, Advance Auto Parts also sold its WorldPac unit in 2024 to the Carlyle Group for $1.5 billion. This cash injection has strengthened the company’s financial position and will help it focus more directly on its core retail operations.

Financial Outlook

Contrary to fears of collapse, the company’s financial updates in early 2025 showed surprising resilience. Advance Auto reported better-than-expected Q1 earnings, reaffirmed its full-year guidance, and forecasted revenues between $8.4 and $8.6 billion with adjusted earnings per share (EPS) ranging from $1.50 to $2.50.

This demonstrates that, although Advance Auto Parts is trimming down, it remains an active player in the auto parts retail sector.

Why Advance Auto Parts Is Not Going Out of Business

So, is Advance Auto Parts going out of business? The short answer is no. Instead, the company is:

• Optimizing Operations – Closing underperforming stores and focusing on more profitable markets.
• Improving Profit Margins – Cutting overhead and adjusting business models to meet changing customer demand.
• Reinvesting in Growth – Opening new stores in promising areas. For instance, Advance Auto launched 30 new stores in 2025 in Ohio, Virginia, Illinois, Florida, Maryland, and Wisconsin.
• Strengthening Financial Health – Using asset sales, such as the WorldPac deal, to generate cash flow and reduce pressure on operations.

Impact on Customers

For loyal shoppers, the closures might cause inconvenience, especially in areas like California where Advance Auto has left completely. However, customers in other states will still have plenty of access to Advance Auto Parts locations, both in-store and online. The company is also investing in digital channels to make ordering and delivery more efficient.

The Bigger Picture: Auto Retail Industry Challenges

The situation with Advance Auto Parts is not unique. Many traditional auto part retailers face challenges due to:

• E-commerce competition from giants like Amazon and RockAuto.
• Shifting consumer demand, with more people relying on professional services rather than DIY repairs.
• Economic pressure, including inflation and tariffs on imported auto parts.

Advance Auto’s restructuring is essentially an effort to survive and adapt in this rapidly changing industry.

Final Verdict: Is Advance Auto Parts Going Out of Business?

Despite closures and restructuring, Advance Auto Parts is not going out of business. The company is simply repositioning itself for a sustainable future. While some communities will lose stores, Advance Auto continues to operate nationwide, report earnings, and even open new stores in strategic markets.

For customers, this means the brand is here to stay—even if it looks very different in the coming years.

Closing Note

The question “Is Advance Auto Parts going out of business?” reflects growing uncertainty in retail, but the reality is more nuanced. Instead of disappearing, Advance Auto is evolving. For detailed updates like these and insights into business trends, follow more articles on my blog: New Leaf By Altintis.