Here's what you need to know
- Potentially more than 2,500 people have been laid off, largely in the last two weeks, from First Brands' facilities across the country.
- First Brands owns more than 20 brands and declared Chapter 11 bankruptcy in September amidst a fraud investigation into company executives.
- Sales negotiations for the company collapsed as the investigation eventually lead to indictments.
First Brands' collapse continues as layoffs are reported at more of its companies. More than 20 brands are part of the portfolio, including Fram, Raybestos, Trico, Autolite, Luber-Finer and Cardone.
The company declared Chapter 11 bankruptcy in September and put itself up for sale in January. Shortly thereafter, two brothers — Patrick and Edward James — were indicted on multiple counts of bank fraud, wire fraud and other charges related to First Brands' failure.
As the investigation deepened and sales efforts collapsed, First Brands has spiraled into waves of layoffs. As of Monday, they include:
- 41 people in Rochester Hills, Mich.
- 407 people in Tiffin, Ohio, at the Toledo Moulding & Die (TMD) plant and 302 people at the Bowling Green, Ohio, TMD plant.
- 302 employees at the Fram Greenville facility in Greenville, Ohio.
- 256 people at the corporate office in Cleveland.
- 194 employees at Hopkins Manufacturing in Edgerton, Kan.
- 81 employees at Hopkins Manufacturing's Emporia, Kan., facility.
- Possibly upwards of 1,000 employees at Champion Labs, Albion, Ill., as reported by local news stations.
- 76 employees at FRAM in Hebron, Ky.
- 64 employees at AVM in East Marion, S.C.
- 87 employees in Arlington, Texas.
- 41 employees at Cardone in Harlingen, Texas.
- 87 employees at Cardone in Arlington, Texas.
- 98 employees in Patterson, Calif.
- 251 employees at Eagle Machining in Fayette, Ohio.
Most of the layoffs were effective immediately. Letters to state and municipal governments said announcing the workforce reductions any earlier may have jeopardized potential sales or rescue financing.
"As you may be aware, the company is currently experiencing a period of financial distress and is in a Chapter 11 bankruptcy process," says one letter to Ohio officials. "Nevertheless, the company has gone to great lengths to maintain its operations. This is included pursuing a sale process as well as attempting to seek additional funding from numerous outside parties. However, under all of these circumstances, the company has now made the difficult decision to close this facility."
