Here’s what you need to know:
- Potentially more than 3,500 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.
Editor's note: See the latest on the First Brands Group case on TPS.
Updated March 5:
First Brands filed a new WARN letter with the state of Tennessee on Thursday, saying it will permanently close TMD Fayetteville by April 30, affecting 333 employees.
TMD is Toledo Molding & Die which makes engineered molded components and assemblies. First Brands previously laid off more than 700 employees at TMD facilities in Ohio.
In Texas, 571 people will be laid off April 30 from three facilities in Brownsville, including 43 at ASC, 183 at Titan Distribution Center and 345 at the facility on Billy Mitchell.
Updated March 4:
Jasper Rubber, another brand owned by First Brands, will close its Jasper, Ind., facility and lay off 345 employees should a buyer not be found by April 30.
Also, Carter Fuel Systems in Logansport, Ind., will lay off 38 employees if a buyer doesn't come forward by the same deadline.
Jasper Mayor Dean Vonderheide told The Dubois County Free Press another buyer could still swoop in, but it's uncertain.
"A lot of industries are slow right now," he says. "Tariffs have impacted them. We'll just have to play it out."
Jasper Rubber was founded in 1949 and was sold to First Brands in 2024.
"This is the concern you have when a privately held company — or in this case, an ESOP — sells to a larger organization and loses control locally," he says. "When you lose control locally, you cannot predict your future."
Updated March 3:
U.S. Sen. Bernie Moreno (R-Ohio) is demanding a federal investigation into First Brands' collapse. In a post on X, Moreno called former executives "scumbags" that should "rot in prison for the pain they're putting these workers and families through."
He goes on to say he will do whatever it takes to ensure all four of First Brands' Ohio facilities are placed in the hands of responsible owners.
Original story follows:
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. 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.
- 81 employees at Hopkins Manufacturing in Edgerton, Kan.
- 64 employees at Horizon Global in Edgerton, Kan.
- 130 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."
