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How First Brands Went from Auto Powerhouse to Bankruptcy Court
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Subscribe30 APR 2026 / BUSINESS
First Brands Group, a private auto parts manufacturer, has filed for Chapter 11 bankruptcy citing liabilities ranging between $10 to $50 billion. An ongoing investigation revealed potential governance issues and fraudulent financing transactions, implicating auditing firm BDO in potential misconduct; these findings have raised significant concerns among the firm's debt investors and creditors and have sparked an inquiry from the U.S. Department of Justice. This situation underscores the risks of over-leveraging, opaque financing structures, and inadequate auditing oversight, and is expected to serve as a cautionary tale in the financial industry.
When it comes to auto parts, breakdowns are supposed to happen on the highway, not in the boardroom. Yet that’s exactly the crash scene we’re watching. First Brands Group, the privately held auto parts maker behind names like Raybestos, TRICO, and FRAM, h...
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