First Brands Group
| Company type | Private |
|---|---|
| Industry | Automotive parts |
| Founded | 2013 in Ohio, United States |
| Founder | Patrick James |
| Headquarters | United States |
Key people | Patrick James (former CEO), Charles Moore (CEO) |
| Products | Windshield wipers, brake components, filters, spark plugs, ignition wire sets |
First Brands Group is an American automotive parts enterprise led by CEO Patrick James.
Originally established in Ohio in 2013 under the name Crowne Group by James, the firm underwent a rebranding to become First Brands Group in 2020. James expanded the company by acquiring Trico, a manufacturer specializing in windshield wipers, alongside approximately 24 other auto parts firms through acquisitions funded by debt. In August 2020, the organization further grew by purchasing Raybestos, a producer of brake components. Its holdings also comprise the filter brand FRAM and Autolite, which offers spark plugs and ignition wire sets.
In September 2025, First Brands initiated a Chapter 11 bankruptcy filing in Texas after experiencing major revenue declines and creditor apprehensions regarding liabilities estimated between $10 and $50 billion, compared to assets valued at $1 to $10 billion. These financial challenges were attributed to "opaque off-balance sheet financing" arrangements.
On October 8, 2025, UBS disclosed its exposure surpassing $500 million through supply chain financing contracts. Concurrently, Katsumi Global announced a claim of $1.7 billion against First Brands. Jefferies Group revealed $715 million in receivables tied to the company via Leucadia Asset Management and projected losses exceeding $40 million. Analysts at Morgan Stanley expressed similar concerns about Jefferies’ financial involvement.
By October 9, the United States Department of Justice commenced a federal criminal probe after uncovering a $2.3 billion discrepancy within the company’s finances, alleging "double-pledging" of trade receivables to investors. Creditor Raistone urged an investigation into the missing funds. Additionally, a joint venture between Norinchukin Bank and Mitsui & Co. reported exposure amounting to $1.75 billion through trade finance arrangements.
On October 10, amid escalating repercussions, CEO Patrick James contemplated resigning. By October 12, Jefferies anticipated minimal effects from the bankruptcy after accounting for share value reductions. On October 13, James stepped down as CEO and was replaced by CFO Charles Moore; his brother Edward James also resigned from an executive position.
That same day, Morningstar DBRS assessed the credit implications for trade credit insurers and reinsurers, characterizing First Brands’ downfall as a significant stress test for insured receivables and private credit markets. Their baseline scenario projected insured losses ranging from $300 million to $600 million—considered manageable within the industry—while a more severe case could result in total losses exceeding $1 billion. They predicted adjustments in pricing for receivables connected to highly leveraged insured entities and intricate supply chain financing structures but noted that insurers' confidence remained strong, as evidenced by near-record exposure levels despite potential volatility during economic downturns.