In a news release issued today, First Brands Group, LLC announced the permanent closure of its Champion Labs facilities located in Albion. The closure is set to commence today (February 23rd) and all affected employees, as many as 1,000 have been notified that their termination will be effective today.
The company expressed regret over the decision, emphasizing that the closure is expected to be permanent and that bumping rights will not apply due to the complete shutdown of the facility.
First Brands Group stated that it had made significant efforts over the past several months to avoid closing the Albion facility. These efforts included seeking capital by marketing and attempting to sell its Champion Laboratories business to a buyer interested in continuing operations, including retaining existing employees. The company noted that announcing the closure earlier could have jeopardized the sale process, as potential buyers were evaluating the possibility of keeping the business operational with its current workforce.
According to the company, a promising bidder recently emerged, and negotiations had progressed to the point where both parties were exchanging drafts of a purchase agreement. First Brands Group believed it was close to securing a deal that would prevent the facility’s closure.
However, several unforeseen events undermined the sale process. The company revealed that certain facilities had been relying on funding from outside parties to support ongoing operations during the sale negotiations. These parties unexpectedly decided to withdraw their financial support before a sale could be finalized, which was not anticipated by the company. The withdrawal of funding significantly impacted the perceived value of the business and made it impossible for a sale to proceed.
“Given the sudden shift in how parties are valuing the business in light of funding requirements, there are no longer any viable transaction prospects that include continuing operations. Regrettably, in the absence of a sale, the company does not have access to capital markets or cash reserves that would allow operations to continue,” the statement read.
First Brands Group stressed that the decision to close the Champion Labs facilities was made only after all options had been exhausted and as soon as it became clear that no path forward remained. The company cited the abrupt changes to the sale process and the withdrawal of funding as unforeseeable events that forced the expedited closure.