FRAM and Autolite Plants Close as First Brands Bankruptcy Affects 2,500 Workers
When Mike Torres reported for his shift at the FRAM manufacturing plant in Greenville, Ohio, on February 23rd, he received unexpected news. The facility, which had employed as many as 450 workers at its peak, would close permanently on April 30th. All 302 remaining employees would be laid off. "I've been here seventeen years," Torres told local reporters.
"Now I'm looking for work in a town where the plant was one of the biggest employers."
First Brands Group — the company behind FRAM oil filters, Autolite spark plugs, Raybestos brake pads, and more than 20 other automotive aftermarket brands — filed Chapter 11 bankruptcy in September 2025. According to court documents, the company reported approximately $9 billion in liabilities against roughly $1 billion in assets, with just $12 million in available cash.
In January 2026, federal prosecutors charged the company's former CEO Patrick James and his brother Edward James with multiple counts including wire fraud, bank fraud, and money laundering. The indictment alleges they used inflated invoices and misleading financial disclosures to secure financing. Both defendants have pleaded not guilty, and the case is ongoing.
During bankruptcy proceedings, the company disclosed that Jefferies' Point Bonita Capital fund had purchased approximately $715 million in First Brands receivables. Court filings show that forensic auditors examined $105.9 million in collected customer receipts and found only $4.4 million matched invoices that had been sold to lenders. The company also reported that customers had frozen roughly $250 million in payments due to concerns about duplicate billing.
By late January 2026, First Brands announced it would wind down its Autolite, Cardone, and Brake Parts Inc. divisions after being unable to secure funding or complete sales for these business units. "We explored all available options to secure funding and advance the sale process," said Charles Moore, interim CEO, in a statement. "Unfortunately, those efforts ultimately did not result in a viable solution."
The closures have affected workers across multiple states. In Ohio, more than 1,200 employees received layoff notices: 407 at the Toledo Moulding & Die facility in Tiffin, 302 at the Bowling Green location, and 302 at the Greenville FRAM plant. Additional closures were announced in Texas, Kansas, Illinois, Michigan, and other states. At Champion Labs in Albion, Illinois, approximately 1,000 workers learned their facility would close.
Industry estimates suggest over 2,500 jobs will be eliminated as the bankruptcy proceeds. Some workers received termination notices on the same day closures were announced, leaving little time to prepare.
"I came in for my shift and they told us the plant was closing," one worker said. "We didn't know there were problems."
The situation has affected the automotive supply chain. Auto parts retailers reported difficulty obtaining inventory for some First Brands products. To maintain supply of critical components, Ford, General Motors, and Harley-Davidson provided emergency funding to keep certain production lines operating for parts used in their vehicles.
For affected communities, the plant closures create economic challenges. When a major employer shuts down, local businesses that depend on worker spending also feel the impact.
"I've learned a harsh truth about the automotive industry," one laid-off employee said. "Job security isn't guaranteed, even at established companies."
An Automotive News report from December noted that automotive suppliers face mounting pressure from falling orders, increased competition, and higher financing costs. Industry analysts have warned that additional supplier bankruptcies could occur in 2026 as companies navigate these challenges.
The criminal case against Patrick and Edward James is proceeding separately from the bankruptcy. If convicted, they could face significant prison sentences. Meanwhile, thousands of former First Brands employees are seeking new employment in communities where the automotive parts plants were often among the largest employers.
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