Bapcor, the ASX-listed owner of Autobarn, Burson and Midas, has seen nearly $500 million wiped from its market value after issuing a shock profit downgrade and announcing the abrupt resignation of three directors.

Shares in the auto parts group plunged 29% to $3.63 on Thursday, following news of weaker-than-expected sales and a ballooning of write-offs.

The sell-off comes just months after the company rejected a $1.83 billion takeover offer from Bain Capital.

The earnings downgrade was accompanied by the immediate resignation of directors Mark Bernhard, Brad Soller and James Todd, triggering what the company says will be an “accelerated” board renewal process.

Bapcor now expects to post a statutory net profit of just $31–$34 million for FY25, a sharp decline from its previous pro-forma profit of $94.8 million, and well below the $126 million it earned four years ago.

The company revealed between $48–$50 million in significant items, including $6.4 million in write-offs from contract and supplier disputes, and increased costs from a botched payroll system replacement.

Adding to the pressure is the growing threat from Bunnings, which is expanding into the $1.5 billion auto parts space.

Wesfarmers’ hardware giant Bunnings plans to roll out 300 automotive products across 300 stores in 2025, directly challenging Bapcor’s Autobarn and Burson brands.

Bapcor CEO Angus McKay, who joined last year from 7-Eleven, acknowledged the difficulties: “The turnaround has proven more complex than expected,” he said, noting weaker trade sales and consumer pullback in discretionary car spending during May and June.

Analysts were scathing. Citi’s Sam Teeger questioned whether Bapcor was still “investible,” citing board instability, deteriorating performance, and competitive threats.

“Conditions are significantly more challenging than expected,” Teeger said.

Bapcor’s sharp decline stands in contrast to stronger recent updates from rivals Repco and Supercheap Auto.