First Brands Group, the U.S.-based parent company of several major automotive aftermarket brands, has filed for Chapter 11 bankruptcy protection as it contends with billions of dollars in debt amassed through a flurry of acquisitions.
The move affects its U.S. business, with international operations said to continue uninterrupted.
The Rochester Hills, Michigan-based supplier, which owns well-known names like Fram, Raybestos and Trico, filed its voluntary petitions in the U.S. Bankruptcy Court for the Southern District of Texas to stabilize its business operations and facilitate a value-maximizing transaction, the company said in a statement.
To ensure business continuity during the court-supervised restructuring, First Brands secured US$1.1 billion in debtor-in-possession (DIP) financing from an ad hoc group of its first-lien lenders, providing the necessary capital to maintain operations, fulfill customer orders, and meet commitments to its vendors and partners, the company’s statement outlined. The DIP financing was obtained as part of an effort to support ongoing operations, Reuters reported.
The Chapter 11 cases pertain solely to the company’s U.S. operations, and First Brands said it expects its global operations, including service to international customers, partners, and employees, to continue without interruption.
“Today’s actions mark an important step toward stabilizing First Brands’ operations and securing a long-term future for the company’s world-class portfolio of aftermarket automotive part brands,” said Chuck Moore, the company’s chief restructuring officer, in a statement.
The move follows months of intense scrutiny from creditors over the company’s heavy debt load, estimated at around US$6 billion, and its stressed finances, Reuters reported. The financial troubles intensified after the company was forced to pause a planned debt refinancing in August.
Prior to the main company filing, more than a dozen affiliated entities used by the group to raise financing, including Carnaby Capital Holdings, filed for bankruptcy protection last week, according to Reuters. These affiliated entities had secured loans backed by guarantees from First Brands, a source told Reuters.
The bankruptcy, coupled with other recent high-profile financial distress in the automotive sector, has rattled debt investors and stoked fears of broader stress in credit markets, Reuters reported. First Brands has filed “First Day Motions” with the court to ensure it can continue paying employee wages and benefits, honour customer commitments, and satisfy post-petition obligations to vendors and partners, First Brands noted.
Feature image: First brands exhibiting at the 2025 Lordco Auto Parts Trade Show in Vancouver
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