First Brands Group Files for Chapter 11, Discloses $10–$50 Billion in Liabilities
Overall, First Brands Group’s Chapter 11 filing represents a major failure in the auto aftermarket space. It underscores the dangers of aggressive debt structures in a rising-rate environment. For now, the company has stayed open for business, suppliers will continue to ship parts, and customers (retailers and repair shops) will receive product normally. The big questions remain how much debt can be restructured, who will control the reorganized firm, and what this means for competitors. Any final outcome (sale or restructuring) will likely emerge only after lengthy court proceedings in the coming months. Sources: First Brands’ Chapter 11 petition and press
