First Brands Group Initiates Wind Down Amid Bankruptcy Crisis

First Brands Group, LLC, an auto parts supplier, has commenced the winding down of its North American operations, specifically targeting its Brake Parts Inc., Cardone, and Autolite divisions. This decision follows the company's Chapter 11 bankruptcy filing in September 2025, driven by significant debt accrued from rapid acquisitions and declining financial performance. The company has reported a severe cash burn rate, with only $190 million remaining from an initial $1.1 billion borrowed for bankruptcy proceedings, which is expected to sustain operations only through the end of January 2026.

First Brands to wind down key units as it seeks buyers amid bankruptcy crisisFirst Brands Starts Shutting Down Three Auto-Parts Lines In Chapter 11First Brands Group Winds Down North American Brake Parts, Cardone, Autolite UnitsFirst Brands Group winding down three brand operations

The winding down of these key business units is part of a broader strategy to stabilize First Brands' financial position. The company is actively seeking buyers for its assets while keeping other North American units and international operations operational. Interim CEO Charles Moore stated that despite exploring various funding options, efforts to secure a viable solution for maintaining the affected operations were unsuccessful. The decision reflects the mounting pressures within the auto parts and financing sectors, where other companies, such as subprime auto lender Tricolor Holdings, have also faced collapse due to aggressive borrowing practices.

First Brands Group Winds Down North American Brake Parts, Cardone, Autolite Units

In a statement, Charles Moore expressed gratitude towards employees for their dedication during this challenging period, emphasizing the company's commitment to maximizing value and transitioning remaining brands to new ownership. He noted, “Unfortunately, those efforts ultimately did not result in a viable solution which would enable us to maintain these operations.” The company is currently in discussions with key customers regarding its other business lines, which include filters, wipers, pumps, lighting, towing, and accessories.

First Brands Group winding down three brand operations

The decision to wind down operations has not been without criticism. Stakeholders have raised concerns about the implications for employees, suppliers, and customers. The opposition from lenders regarding a proposed $700 million loan has also been a significant factor in the company's decision to liquidate parts of its business. Additionally, a U.S. bankruptcy judge has ordered a $7 million independent investigation into allegations of misuse of third-party financing for customer invoices, further complicating the company's situation.

First Brands Group Winds Down North American Brake Parts, Cardone, Autolite Units

As First Brands Group moves forward with the wind down of its Brake Parts, Cardone, and Autolite units, the focus will shift towards finding potential buyers for its remaining assets. This process is critical for the company's recovery and may provide a pathway to a restructured business model in the future. The ongoing efforts to stabilize operations and communicate with stakeholders will be essential as the company navigates this challenging landscape.

First Brands Group Winds Down North American Brake Parts, Cardone, Autolite Units

• “Over the past several months, we explored all available options to secure funding and advance the sale process for the Brake Parts Inc., Cardone, and Autolite businesses,” — Charles Moore, Interim CEO of First Brands Group

First Brands Group winding down three brand operations

• “While this is not the outcome we worked toward, I want to sincerely thank our employees for their dedication, professionalism, and resilience throughout this process.” — Charles Moore, Interim CEO of First Brands Group

First Brands Group winding down three brand operations