First Brands Group Initiates Wind-Down of Select North American Operations
First Brands Group, a global supplier of automotive aftermarket and original equipment parts, has announced the initiation of a wind-down of certain North American business operations as part of an ongoing strategic review. The affected operations include the company’s well-known Brake Parts Inc., Cardone, and Autolite brands. At the same time, First Brands confirmed that its remaining business units continue to operate normally as the company evaluates potential pathways to transition these operations to new ownership.
The decision follows an extensive review of strategic alternatives aimed at securing the long-term viability of the impacted businesses. According to the company, despite sustained efforts over recent months to explore financing solutions and sale opportunities, no viable option emerged that would allow the Brake Parts Inc., Cardone, and Autolite operations to continue in their current form under First Brands’ ownership.
Leadership Perspective on the Strategic Decision
Commenting on the announcement, Interim Chief Executive Officer Charles Moore acknowledged the significance of the decision and the efforts undertaken by the leadership team. He stated that First Brands thoroughly evaluated all available funding and transaction alternatives in an attempt to stabilize and sustain the affected businesses. However, the company ultimately concluded that an orderly wind-down was the most responsible course of action under the circumstances.
Moore expressed his appreciation for the dedication and professionalism of employees across the impacted brands, recognizing their contributions during what has been a challenging period. He also emphasized that the company remains committed to a disciplined approach focused on preserving value and maximizing outcomes across the rest of the First Brands portfolio.
Core North American Operations Continue Uninterrupted
Importantly, the wind-down does not impact First Brands’ other North American operations. The company confirmed that several core product categories remain fully operational, including filters, wipers, pumps, lighting, towing products, and automotive accessories. These business units continue to serve customers across the automotive aftermarket and supply chain without interruption.
First Brands noted that it is currently engaged in productive discussions with key customers, many of whom recognize the strategic importance of these ongoing operations. The company emphasized that these businesses play a critical role within the automotive supply chain, supporting vehicle maintenance, safety, and performance across a wide range of applications.
International Operations Remain Unaffected
In addition to maintaining stability in its core North American businesses, First Brands clarified that its Rest of World operations are not included in the wind-down process or in the company’s Chapter 11 proceedings. International business units continue to operate as usual, serving customers across global markets.
The company indicated that it remains open to exploring opportunities to transition its international operations to new ownership where appropriate. These discussions are part of a broader effort to position First Brands’ global assets in a way that best serves customers, employees, and other stakeholders over the long term.
Focus on Value Preservation and Orderly Transition
As the wind-down process moves forward, First Brands reiterated its commitment to acting in a disciplined and transparent manner. The company stated that its primary objective is to preserve value while facilitating an orderly transition of its remaining portfolio of leading automotive brands.
This process is being conducted in close collaboration with customers, suppliers, lenders, and other stakeholders. First Brands emphasized that maintaining continuity where possible and minimizing disruption across the automotive ecosystem remains a key priority during this transition phase.
Chapter 11 Process and Stakeholder Resources
First Brands also provided guidance for stakeholders seeking additional information regarding the Chapter 11 process. Details related to claims, case updates, and key deadlines are available through the company’s claims agent, Kroll. Stakeholders can access relevant information online or contact Kroll directly via phone or email for assistance and support.
Advisory Team Supporting the Process
To navigate the complexity of the restructuring and wind-down, First Brands has engaged a team of experienced professional advisors. Weil, Gotshal & Manges LLP is serving as legal counsel, while Lazard is acting as investment banker. Financial advisory services are being provided by Alvarez & Marsal, and strategic communications support is being led by C Street Advisory Group.
Together, these advisors are supporting First Brands as it works through the wind-down, restructuring, and potential ownership transition processes, with a focus on achieving the best possible outcomes for all stakeholders involved.
About First Brands Group
First Brands Group is a global automotive parts company developing and marketing premium products through a portfolio of market-leading brands spanning braking systems, filtration, wiper blades, pumps, ignition components, lift supports, towing and trailering solutions, and aftermarket lighting, supported by advanced engineering capabilities and a commitment to customer service.
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