- First Brands is killing off Autolite, Cardone, and Brake Parts Inc.
- The move comes after months of trying to sell the brands.
- First Brands declared bankruptcy last fall and is revamping its business.
If you’re a fan of Autolite spark plugs, you might want to pour one out for your dearly departed friend. The company is the latest casualty of the First Brands Group bankruptcy, which has thrown a wrench into the automotive supply chain.
While the bankruptcy process got underway last September, First Brands has just announced they’ve started winding down certain parts of their North American business. This includes killing Autolite as well as Cardone and Brake Parts Inc.
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While Autolite is probably the best known of the three, Cardone offered an assortment of components ranging from brakes to power steering systems. They also offered suspension components, fuel injection systems, and emissions control technologies.
Brake Parts Inc, on the other hand, was behind Aimco, BrakePro, Vortex, and Raybestos. The latter brand has been around for over a century, so it’s apparent death is saddening.
In a statement, First Brands Group CEO Charles Moore said “We explored all available options to secure funding and advance the sale process for the Brake Parts Inc., Cardone, and Autolite businesses. Unfortunately, those efforts ultimately did not result in a viable solution, which would enable us to maintain these operations.”
First Brands Group was originally founded in 2013 as the Crowne Group and began gobbling up suppliers. This includes several big names including Fram, Trico, and Draw-tite – among others. Along the way, the company racked up huge debts and eventually had to declare Chapter 11 bankruptcy.
While the other brands are safe, for now, the supplier has hundreds of claims against them. Key among them is Marelli, which is seeking $200 million. FedEx is also going after Brake Parts Inc for $5,449,722.17, while the IRS wants $4,679,617.89 from Cardone. The list goes on and on, but there’s little doubt creditors and consumers will end up losing in the bankruptcy.
