Advance Auto Parts
Automotive aftermarket parts retailer serving DIY and professional customers.
PE-OWNED
Acquired by Cerberus Capital Management2014-01-02
What Made It Great
Leading auto parts chain with strong commercial sales and delivery network
What PE Will Likely Do
Advance Auto Parts will likely close a significant number of their retail locations, impacting customer convenience and access to their products
The quality and selection of automotive parts and accessories offered by Advance Auto Parts will likely decline as they reduce inventory levels to improve cash flow
The level of customer service and expertise provided by Advance Auto Parts employees will likely diminish as the company enacts staffing reductions to cut costs
The reliability and performance of Advance Auto Parts' delivery network for professional and commercial customers will likely deteriorate as the company defers maintenance and upgrades
Expected Timeline
“0 to 6 months months”
Advance Auto Parts will announce plans for 'optimizing' their retail footprint and 'streamlining' operations
“6 to 12 months months”
Advance Auto Parts will begin closing underperforming retail locations and implementing staff reductions
“12 to 24 months months”
Customers will notice a decline in product selection, inventory levels, and in-store experience at Advance Auto Parts locations
“24 to 48 months months”
Advance Auto Parts may face financial difficulties and bankruptcy rumors as the company continues aggressive cost-cutting measures
“48 to 60 months months”
Advance Auto Parts could potentially face restructuring, a fire sale, or even liquidation if the company is unable to return to profitability
Similar Cases
Other companies that followed a similar path after PE acquisition
What You Can Do
Actions
Consumers should expect to see a gradual decline in the availability, quality, and reliability of automotive parts and services at Advance Auto Parts locations
Consumers who rely on Advance Auto Parts for their DIY or professional automotive needs should consider alternative suppliers and sources for parts and accessories
Consumers should be prepared for potentially longer wait times, reduced inventory, and lower-quality customer service at Advance Auto Parts stores
Alternatives
Employee-owned warehouse retailer
Publicly traded retailer with strong values