First Brands begins winding down North American operations amid bankruptcy liquidation pressure

First Brands has commenced the process of winding down significant portions of its North American operations as part of its ongoing Chapter 11 bankruptcy proceedings. The move affects key units including Brake Parts, Cardone, and Autolite, highlighting the severe financial pressure currently facing the auto-parts industry in the US. This restructuring comes at a time of broader sector instability, recently exemplified by the collapse of other firms such as Tricolor Holdings.

The company originally filed for Chapter 11 bankruptcy protection in late September 2025. While First Brands initially borrowed $1.1 billion to fund its operations during the bankruptcy process, its financial position has deteriorated rapidly. The company currently reports having only $190 million in remaining cash, a situation that has prompted significant pushback from its primary financial backers.