Why This Matters to Distributors: Distributors that relied on First Brands across multiple product categories must quickly replace supply while maintaining service levels. The collapse also highlights the risk of depending on a single supplier for a broad range of critical parts.
Hilco Global and SB360 Capital Partners are liquidating inventory and manufacturing equipment from First Brands Group following the company’s Chapter 11 bankruptcy filing, removing a major supplier from the U.S. automotive aftermarket supply chain.
First Brands filed for bankruptcy protection on Sept. 28, 2025, in the U.S. Bankruptcy Court for the Southern District of Texas. The Cleveland-based company reported $1 billion to $10 billion in assets and $10 billion to $50 billion in liabilities. It operated a vertically integrated network of manufacturing and distribution facilities across five continents and employed about 26,000 people worldwide, including 6,000 in the United States.
For distributors, First Brands was a core supplier across multiple high-volume categories. Its portfolio included brake components, filtration products, ignition parts, and wiper blades sold under brands such as Cardone, Raybestos, Centric, StopTech, Fram, Autolite, Champion Laboratories and Trico. These products were widely distributed through national chains, independent distributors, and professional installer networks. The company also supplied large customers including General Motors, Nissan, NAPA, and O’Reilly Auto Parts.
The company’s collapse followed a period of rapid expansion and rising costs. Beginning in 2019, First Brands pursued acquisitions that expanded their product portfolio and market reach. In 2025, tariffs on certain imported goods increased costs across the aftermarket parts sector. The company reported about $220 million in tariff-related expenses, including $60 million to build inventory ahead of supply disruptions.
A planned $6.2 billion refinancing effort was halted in mid-2025 for a review of financial results. The situation deteriorated after the U.S. Department of Justice opened a criminal investigation. Federal investigators alleged the company pledged the same receivables to multiple lenders, and creditors claimed more than $2.3 billion could not be accounted for. Founder Patrick James stepped down as chief executive in October 2025.
In January 2026, First Brands said it would wind down several subsidiaries, including Autolite, Brake Parts Inc. and Cardone, after failing to secure financing or complete a sale. The company has since moved to liquidate most operations, converting many cases from Chapter 11 reorganization to Chapter 7 liquidation.
The Hilco and SB360 joint ventures are now marketing assets across those business units. Available inventory includes branded aftermarket parts across braking, filtration, ignition, and wiper categories. Manufacturing equipment for sale includes injection molding, machining, stamping, rubber production, and filter manufacturing systems.
“These are category-defining brands with deep market penetration and loyal customer bases,” a Hilco Global representative said.
For distributors, the impact is immediate. Many relied on First Brands as a sole source across multiple categories. With those supply lines disrupted, distributors must identify and qualify replacement suppliers across several product lines at once while maintaining service levels for both retail and professional customers.
At the same time, the liquidation is creating short-term buying opportunities. Distributors and retailers can acquire inventory tied to recognized brands at reduced prices, which may help fill near-term gaps or expand assortment. For some buyers, the availability of manufacturing equipment also presents a path to adding production capacity or secure more direct control over supply.
The collapse highlights the degree to which distributors depend on a concentrated group of large suppliers. First Brands controlled multiple leading brands across essential maintenance categories, and its failure has exposed how widely that risk was distributed across the aftermarket channel.
Hilco Global is based in Northbrook, Illinois. SB360 Capital Partners provides advisory and asset disposition services, primarily in retail and consumer sectors.
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