Why Shares in Advance Auto Parts Crashed This Week

Shares in Advance Auto Parts (NYSE: AAP) declined by 18% in the week to Friday morning, as investors continued to digest the newsflow from one of its suppliers' Chapter 11 bankruptcy process.When a supplier to Advance Auto Parts, AutoZone, and O'Reilly Auto Parts files for bankruptcy, the usual hope is that the Chapter 11 process will result in a restructuring or a sale that will keep at least part of the business running and parts supplied to retailers. That's a big consideration for Advance Auto Parts and others, because the key to running an auto parts retailer is maintaining a constant in-store inventory for customers.As such, when First Brands filed for Chapter 11 on Sept. 28 , investors were hoping that the Advance Auto Parts supply chain (First Brands products include Carter fuel pumps, Trico windshield wipers, and Fram filters and other products) might not be severely impacted.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool