CarParts.com Co-founder Appeals for Board Intervention Amidst Business Decline

Mehran Nia, the co-founder and former CEO of CarParts.com, Inc. (NASDAQ:PRTS), has issued a letter expressing serious concern about the company's current downturn. Highlighting issues such as shrinking margins, increasing costs, and significant employee turnover, Nia emphasized the urgency for the board of directors to take action to stem further decline and restore profitability.

During his previous leadership from 2019 to 2021, Nia noted that strategic initiatives led to significant shareholder returns, particularly through the strengthening of CarParts.com’s private label business. However, since his departure, he has observed a deterioration in the execution of company strategies, resulting in lost gains from earlier efforts. The company's pivot to a low-margin drop-ship model and poorly executed technology projects are among the critical points Nia raised as detrimental shifts away from its core strengths.

Nia explicitly cited a loss of key talents and a void in C-Level leadership with adequate industry experience as primary reasons for the current disarray. He argued that without rectifying these issues, CarParts.com risks prolonging its downturn. In his letter, Nia expressed a readiness to aid in a potential turnaround, dependent on immediate corrective actions by the board and management.