First Brands sells the Fram and Autolite brands for $25 million

LootboxPhobia · 2026-03-27T17:25:06+00:00

First Brands Group has filed for bankruptcy and agreed to sell 12 brands, including Fram, to PGI Northstar for $25 million. PGI will also assume related liabilities. The transaction requires court approval. Due to funding shortages and customer loss, First Brands had attempted to sell these businesses earlier and has shut down multiple factories. This is their second major transaction since ceasing operations, and the proceeds will be used to compensate creditors.

LootboxPhobia

2026-03-27 17:25:06

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Investing.com - According to court filings submitted on Thursday, First Brands Group, an auto parts manufacturer that has filed for bankruptcy, has agreed to sell its 12 brands to PGI Northstar for $25 million, including Fram, Autolite, and Trico.

As part of the transaction, PGI Northstar will also assume certain liabilities related to these brands. The sale can only be completed after receiving a judge’s approval.

The court documents show that First Brands had tried to sell these business units while they were still operating, but potential buyers pulled out as orders disappeared and the company drained its cash reserves to keep running.

The company said that the high costs and funding requirements needed to restart operations led major customers to leave.

Earlier this year, First Brands shut down 17 factories and laid off 4,000 people. The company has been trying to sell its remaining manufacturing facilities after the new management found widespread fraud and lenders refused to provide enough funding to restructure the corporate group.

This is the second major deal since First Brands began shutting down most of its operations. Earlier this March, the company agreed to sell its fuel control systems division to an automaker for $50 million.

The proceeds from the sale will be allocated to creditors who claim they suffered losses due to the corporate fraud that caused First Brands to go bankrupt last year.

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