Walt’s Radiator and Muffler, which began in 1960 as a radiator repair shop in the Tacoma suburb or Lakewood, recently closed a dozen unprofitable locations, including one in Silverdale. The Fife-based company also announced it’s getting out of the parts distribution business.

Walt’s, which filed for Chapter 11 bankruptcy protection last month, will continue to operate its 24 money-making locations — including the one at 3540 Mile Hill Drive in Port Orchard. According to Walt’s CEO Steven Dwinal, the Port Orchard store will handle warranties issued in Silverdale.

Dwinal added the firm has also closed three of its distribution centers and will phase out the remaining two. Walt’s opened Olympic Distributing in 1982 to serve as the main source of parts for its stores. Dwinal cited Puget Sound’s legendary traffic congestion as the culprit because it has made delivering parts to stores too costly and hurt the company’s ability to provide same-day service.

Instead, key vendors will now provide in-store stocking and Walt’s has worked out a parts arrangement with Schuck’s, which, in most cases, has stores nearby.

Dwinal also noted that most of the company’s displaced employees went to work for the vendors.

According to Dwinal, the Silverdale store at 2600 Randall Way never made a profit. But in spite of trimming one-third of its stores, Walt’s will continue to employ 120 people, do $12 million to $15 million in business, buy $4 million worth of parts, and again be profitable.

Bankruptcy papers say the company has more than $7 million in debt and only $3.4 million in assets. Walt’s has submitted a reorganization plan to U.S. Bankruptcy Court in Tacoma.