First Brands Group has terminated 146 employees at its Cleveland corporate headquarters. The mass layoff, effective February 23, took place at the company’s offices at 127 Public Square as its Chapter 11 restructuring continues to unravel.
Highlights
- First Brands Group laid off 146 corporate employees at its Cleveland headquarters on February 23, with all terminations effective immediately
- The company cited collapsed sale negotiations and the sudden withdrawal of potential bidders as reasons for the abrupt action
- Affected roles span sales, engineering, operations, and executive leadership, including VP-level positions in brakes and customer service
- The layoffs follow the January 26 wind-down of Brake Parts Inc., Cardone, and Autolite operations in North America
WARN Act Filing Details
The layoffs were disclosed through a Worker Adjustment and Retraining Notification (WARN) Act filing submitted to Ohio state officials on February 23. First Brands described the terminations as permanent. The company did not provide the standard 60-day advance notice required under federal law.
In the filing, First Brands invoked exceptions under 29 U.S.C. § 2102(b)(1) and (2)(A). The company stated that earlier disclosure would have jeopardized active sale negotiations and discouraged potential bidders who were interested in acquiring business lines along with their employees.
Sale Process Collapse
First Brands said it had been pursuing asset sales for several months. According to the filing, the company marketed its business lines to multiple potential buyers, exchanged draft agreements, and progressed toward deals that would have preserved operations and employment.
However, several bidders recently withdrew or narrowed their offers. The company stated it no longer sees a viable path to retaining certain employees. First Brands also disclosed that efforts to secure additional financing to sustain operations through the sale process were unsuccessful.
Multiple outside funding sources reduced or ceased their commitments. As a result, the sale of certain facilities and business units cannot proceed as planned.
Affected Positions
The 146 terminated positions represent a broad cross-section of corporate functions. The largest groups include:
- Account Managers: 17 positions
- Zone Managers: 9 positions
- Analyst roles (CPFR, Finance, Sales Ops, Supply Chain): 16 positions combined
- Field Sales Managers: 6 positions
- National Account Managers: 4 positions
- Business Development Managers: 3 positions
- Program Managers: 3 positions
Senior leadership roles were also eliminated, including the VP of Operations Brakes, VP of Customer Service, VP of WD Sales Channel, and multiple director-level positions across sales, engineering, human resources, and business intelligence.
Ongoing Bankruptcy Proceedings
First Brands filed for Chapter 11 protection on September 28, 2025, in the U.S. Bankruptcy Court for the Southern District of Texas. The company reported assets between $1 billion and $10 billion against liabilities of $10 billion to $50 billion.
The bankruptcy has been marked by allegations of financial fraud against founder Patrick James and his brother Edward James, who were indicted on federal fraud charges on January 29. Prosecutors allege the brothers inflated invoices, double-pledged assets, and concealed liabilities from lenders.
On January 26, the company announced the wind-down of its Brake Parts Inc., Cardone, and Autolite operations after failing to secure viable sale or funding solutions. Remaining business units, including filters, wipers, pumps, lighting, towing, and accessories, continue to operate while the company seeks new ownership.
WARN Act Litigation Risk
First Brands already faces a class action adversary proceeding filed February 13 by Raisner Roupinian LLP. That complaint seeks to recover 60 days’ wages and benefits for employees terminated on or about February 3 without the required advance notice. Additional WARN Act investigations are underway at facilities in Illinois, Ohio, and Indiana.
The Cleveland headquarters layoff, also conducted without 60-day notice, could face similar legal scrutiny. Paul Kosturos (833-434-2557) was listed as the company’s contact for further information.
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