First Brands Group, the parent company of hitch and towing brands Bulldog, Draw-Tite, Fulton, Reese and Tekonsha, as well as Hopkins Manufacturing, is shutting some automotive brands as the company seeks new options to remain in business.
The company said Monday that its Brake Parts Inc., Cardone and Autolite brands will close. The remaining businesses, including the hitch and towing brands, continue to operate while the company assesses pathways to transition these operations to new ownership.
Specifically, the company said its North American filters, wipers, pumps, lighting, towing and accessories businesses remain operational.
Charles Moore, interim CEO, said, “Over the past several months, 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.”
The company said it is in productive dialogue with certain key customers regarding its remaining businesses. First Brands Group said its customers recognize the critical role its businesses play in the automotive supply chain.
“As we move forward,” Moore said, “we will continue to act in a disciplined manner to maximize value and transition our remaining portfolio of leading brands to new ownership in partnership with our key customers.”
Published reports this week detailed the role First Brands Group’s customers are playing in the firm’s survival. The Financial Times reported Ford and General Motors are among the customers offering financing to First Brands Group to keep the company operating during its bankruptcy proceedings. Bloomberg said the moves were made as First Brands Group’s lenders considered whether they would provide funding to keep the company afloat.
First Brands said in bankruptcy court filings this month that it has $190 million remaining of the $1.1 billion it borrowed to start its bankruptcy. The court filing said the funds would sustain operations through the end of January.
In court filings this week, First Brands Group asked the court to let the firm borrow $48 million from customers, including Ford, GM, Harley-Davidson and Polaris, to keep operations open after January.
