First Brands Bankruptcy: Ohio Job Losses & Fraud Allegations

First Brands Group, an Ohio-based auto parts supplier, is shuttering four facilities and laying off 1,200 workers as the company navigates bankruptcy proceedings and its founder faces federal fraud charges, according to a notice filed with Ohio Job and Family Services and reported by the Akron Beacon Journal.

The closures, slated to be completed by April 30, include the company’s corporate office in Cleveland, impacting a significant portion of its workforce. First Brands, which owns brands such as Trico, FRAM, Raybestos, and Autolite, filed for Chapter 11 bankruptcy protection in September 2025, citing substantial revenue losses and creditor concerns over liabilities estimated between $10 and $50 billion against assets of $1 to $10 billion, as detailed in court filings and reported by Reuters.

Patrick James, the founder and former CEO of First Brands, and his brother are facing federal charges related to an alleged multi-billion dollar fraud scheme, the Department of Justice announced on January 29, 2026. At the time of its bankruptcy filing, First Brands reported approximately $5 billion in net annual sales worldwide, while declaring just $12 million in cash on hand, according to the Justice Department.

The company’s bankruptcy proceedings have been complicated by the withdrawal of several potential buyers, according to WARN notices, leading First Brands to pursue a settlement with creditors and wind down most of its operations. A settlement is nearing completion, with plans to sell off individual business units, Reuters reported on February 27, 2026.

UBS has announced an investigation into First Brands’ bankruptcy case, citing exposure of more than $500 million through supply chain financing agreements. The investigation began on October 8, 2025, according to court documents.

First Brands Group was founded in 2013 as Crowne Group, rebranding as First Brands Group in 2020. James acquired approximately 24 auto parts manufacturers, including Raybestos in August 2020, utilizing debt financing, according to the company’s website and reports from multiple news sources.