Three aftermarket brands will be no more soon as First Brands Group says it has begun winding down certain North American operations.
The move includes its Brake Parts Inc., Cardone and Autolite brands, while other business units continue to operate as the company seeks to transition them to new ownership.
“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,” said Charles Moore, interim Chief Executive Officer of First Brands Group. “Unfortunately, those efforts ultimately did not result in a viable solution which would enable us to maintain these 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.”
He added that the company “we will continue to act in a disciplined manner” as it seeks to maximize its value and move its remaining pieces to a new owner “in partnership with our key customers.”
The company said the wind-down does not include its other North American businesses, which cover filters, wipers, pumps, lighting, towing and accessories. First Brands said it is in active discussions with key customers who support continued operations in those categories.
The move also does not include First Brands’ ‘rest of world’ operations. Those businesses are not part of the company’s Chapter 11 cases, and First Brands said it continues to assess ways to transfer them to new ownership.
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