The judge in First Brands’ Chapter 11 bankruptcy case has scheduled an auction for the financially troubled auto parts maker on February 9th in New York City. Interested buyers must submit bids by January 30th. First Brands, parent company of Champion Laboratories in Albion, filed for bankruptcy after accumulating massive debt, facing fraud allegations, and failing to refinance.
A recent lawsuit by First Brands accuses Edward James, brother of the company’s founder, and Onset Financial of conspiring to defraud creditors. Onset has denied these claims. Federal prosecutors are investigating Patrick James.
Despite rumors, Albion Mayor Wes Harris confirmed Champion Laboratories is not closing, noting no WARN notice has been issued. However, the facility’s third shift has been temporarily suspended as bankruptcy proceedings continue. First Brands’ collapse is impacting the auto parts supply chain, with brands like Fram, Autolite, and Trico affected.