First Brands Group

First Brands Group is an American auto parts company, owned by its CEO, Patrick James.

The company was founded in 2013 in Ohio by James as Crowne Group, and was rebranded as First Brands Group in 2020.^[1][2] James bought Trico, a manufacturer of windshield wipers and, using debt, acquired numerous auto parts manufacturers, some 24 in total according to the company website.^[2] In August 2020, they acquired brakes manufacturer Raybestos. They own filters maker FRAM, and the Autolite brand of spark plugs and ignition wire sets.

In September 2025, First Brands filed for Chapter 11 bankruptcy protection in Texas, after substantial losses in revenue, and due to creditor concern over liabilities of $10–50 billion against assets of $1–10 billion, funded by "opaque off-balance sheet financing".^[2][3]

On October 8, 2025, UBS announced that they would be investigating First Brands' bankruptcy case. UBS claimed that they had exposure of more than $500 million from First Brands' bankruptcy through agreements towards supply chain financing.^[4] That same day, Katsumi Global claimed that First Brands owed them $1.7 billion.^[5] Jefferies Group also ended up being exposed to First Brands' bankruptcy case, claiming that Leucadia Asset Management, a fund managed by the company, held $715 million in receivables linked to First Brands. Jefferies also accused First Brands of failing to make payments from obligators of Point Bonita Capital, managed by Leucadia. Analysts at Morgan Stanley predicted that Jefferies is expected to lose over $40 million as a result of the bankruptcy case.^[6]

On October 9, it was reported that First Brands would be facing a federal criminal investigation by the United States Department of Justice after discovering over $2.3 billion went missing. They accused the company of "double-pledging its trade receivables to third-party investors."^[7] Raistone, a creditor of First Brands, claimed that the $2.3 billion "vanished" from the company.^[8] Later that day, a joint venture between Norinchukin Bank and Mitsui & Co. claimed that $1.75 billion was exposed to First Brands, stating that they extended trade financing to the company.^[9]

On October 10, Patrick James announced that he would be discussing the possibility of stepping down as CEO of the company.^[10] On October 12, 2025, Jefferies claimed that they would see limited impact from the bankruptcy of First Brands and that any potential losses would easily be manageable following a significant share loss in its stock.^[11] On October 13, 2025, James resigned as CEO and announced that Charles Moore, CFO of the company, would replace him as CEO. James also announced that his brother, Edward James, would be resigning from his senior position with the company.^[12]

On October 13, Morningstar DBRS published a research note discussing the credit implications of First Brands' bankruptcy for trade credit insurers and reinsurers. According to the credit rating agency, "the collapse of First Brands is likely to become a real-world stress test for the trade credit ecosystem at the intersection of insured receivables and private credit."^[13] Morningstar DBRS' initial base case for total insured losses linked to First Brands' receivables program is in the range of $300–600 million, which Morningstar DBRS believes should remain manageable for the sector (i.e., an earnings event with no capital strain). In its adverse scenario, Morningstar DBRS "anticipate[s] broader claims recognition, reserve strengthening, and total losses potentially exceeding $1 billion across trade credit insurers and reinsurers." For the broader TCI market, Morningstar DBRS "expect[s] a general repricing of receivables associated with highly leveraged insureds and complex supply chain finance structures."