First Brands Group has initiated a wind down of its Brake Parts Inc., Cardone, and Autolite business units in North America. The Rochester Hills, Michigan-based automotive parts supplier confirmed the decision after months of unsuccessful efforts to secure funding or complete sales for these operations.
Highlights
- First Brands Group is winding down Brake Parts Inc., Cardone, and Autolite operations after failing to secure viable funding or sale solutions
- Other North American business units continue operating, including filters, wipers, pumps, lighting, towing, and accessories
- Rest of World operations remain unaffected and are not part of the company’s Chapter 11 proceedings
- Strategic sale discussions continue for remaining portfolio brands with key customer support
Wind Down Scope and Continuing Operations
The wind down specifically targets three business units while leaving substantial portions of First Brands’ portfolio intact. Operations continuing under active sale discussions include filters, wipers, pumps, lighting, towing, and accessories divisions.
“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. “Unfortunately, those efforts ultimately did not result in a viable solution which would enable us to maintain these operations.”
Related
- First Brands Group Launches Chapter 11 Sale Process
- The Fall of First Brands: How Did We Get Here & What Comes Next
First Brands reports productive dialogue with key customers regarding its continuing operations. These customers recognize the critical supply chain role these businesses serve and support their continued operations during the transition process.
International Operations Excluded
First Brands’ Rest of World operations are not included in the wind down announcement. These international business units fall outside the company’s Chapter 11 cases, and the company continues assessing pathways to transition these operations to new ownership.
Affected Brake Industry Brands
The wind down impacts several established aftermarket brake brands within the First Brands portfolio:
- Raybestos complete brake solutions
- Centric Parts replacement brake components
- StopTech performance brakes
- Carlson brake hardware
- Cardone new and remanufactured replacement parts
Chapter 11 Process Information
Stakeholders seeking additional information regarding First Brands’ restructuring process can access resources at https://restructuring.ra.kroll.com/firstbrands. Questions may be directed to claims agent Kroll at (877) 631-1151 or +1 (646) 290-7146 for international callers, or via email at [email protected].
Weil, Gotshal and Manges LLP serves as legal counsel, with Lazard as investment banker, Alvarez & Marsal as financial advisor, and C Street Advisory Group handling strategic communications.
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