The state was informed on November 14 by Advance Auto Parts that it was closing 136 stores in California and one distribution site in San Bernardino County.
As a result of the closures, the company is employing 1,617 people in total.
The closure of Advance Auto Part’s California facilities is part of a larger pattern of retail closures in the state, despite the fact that the company has more than 4,700 sites across the US, Canada, Puerto Rico, and the US Virgin Islands.
Financial difficulties and changing consumer habits have forced the closure of multiple stores for other large brands, including Rite Aid, Big Lots, and Macy’s.
Nationwide, more than 500 stores have closed
Layoffs at Advance Auto Parts coincide with an unsatisfactory third-quarter earnings report. The corporation said in a news release that its third-quarter net profit was $2.1 billion, which was $100 million less than its third-quarter earnings in 2023.
The company is eliminating four distribution hubs, 204 independent sites, and 523 Advance corporate stores in an effort to improve its profitability.
Additionally, the business intends to enhance its supply chain management and merchandising.
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Notice 60 days before a mass layoff
Advance Auto Parts informed the California Employment Development Department (EDD) of their intention to shut down every location in California.
Information about job closures and layoffs is detailed in the Worker Adjustment and Retraining Notification (WARN) report.
Before closing a factory or implementing mass layoffs, firms with 100 or more workers are required by the WARN Act to provide 60 days’ notice. Employees and their families might use this time to get ready for losing their jobs.
