The shutdowns come after Cardone parent company First Brands, based in Cleveland, declared Chapter 11 bankruptcy last fall. First Brands owns and licenses a variety of aftermarket auto parts brands, including Michelin-licensed wiper blades and Autolite spark plugs. It employed 26,000 people and did $5 billion in sales in 2024, according to bankruptcy filings.<\/p>\n
While a company of First Brands\u2019 size would usually be insignificant, its bankruptcy rocked the financial world because of its funding model. First Brands, founded in 2013 by Patrick James, grew quickly through acquisitions paid for by borrowing money. Much of that money came from the nascent and loosely regulated well of private credit.<\/p>\n
Business Briefing<\/p>\n
By signing up, you agree to our\u00a0Terms of Service<\/a>\u00a0and\u00a0Privacy Policy.<\/a><\/p>\n First Brands owed billions, but per an indictment, only had $12 million in its corporate bank accounts when it filed for bankruptcy.<\/p>\n Founder arrested for fraud<\/p>\n On Thursday, founder and \u2014 until very recently \u2014 CEO Patrick James and his brother Edward, who also served as a First Brands executive, were arrested in Ohio and indicted on multiple fraud charges. Another executive, Peter Andrew Brumbergs pled guilty to related charges and is cooperating with the government.<\/p>\n The indictment accuses the pair of perpetrating a widespread fraud scheme, including inflating invoices, falsifying financial documents and double- and triple-counting collateral. <\/p>\n The indictment also accuses Patrick James of using the fraud scheme to enrich himself by hundreds of millions of dollars. <\/p>\n \u201cThe James brothers obtained billions for First Brands \u2014 and millions for themselves \u2014 by presenting their lenders with the impression of a successful, growing international business,\u201c said U.S. Attorney Jay Clayton in a release. \u201dThe indictment and the guilty plea unsealed today describe a very different reality: a business run through fraud, fake documents, and false financials.”<\/p>\n First Brands\u2019 bankruptcy and the subsequent arrest of its founder are the second such sequence of events to rattle the world of corporate credit. In late 2025, Daniel Chu, CEO of Irving-based Tricolor, was also arrested<\/a> following his company\u2019s sudden bankruptcy.<\/p>\n Related<\/p>\n On Wednesday, a filing from First Brands indicated it has reached a week-to-week emergency funding agreement \u2014 \u201ca last-minute \u2018lifeline\u2019\u201d, per the filing \u2014 with its OEM customers that, pending approval, would allow First Brands to continue manufacturing critical parts in certain business segments. The filing says that the customers have agreed to prepay for products and operations priced at $48 million for the first week. <\/p>\n The customers include Ford, General Motors, Harley-Davidson, Honda, Polaris, Audi, International Motors, Nissan, Mercury, Volkswagen and BMW, according to the filing. <\/p>\n A hearing on the agreement is scheduled for Thursday.<\/p>\n However, the business segments that contain the two Texas facilities and 15 more nationwide and employing around 4,000 people will still be shut down. <\/p>\n The WARN notice says that First Brands tried to sell the brands without success and could not secure financing in time to save the segments. <\/p>\n \u201cFor the past several months, the Company has been actively seeking additional financing that it reasonably believed could be obtained and would have been sufficient to avoid or postpone this shutdown,\u201d the notice reads.<\/p>\n \u201cAlthough the Company believed financing could be obtained, those efforts were ultimately unsuccessful, and no commitments were made. Once it became clear that no viable source of additional financing remained available, the Company provided this notice.\u201d<\/p>\n First Brands did not respond to a request for comment. <\/p>\n Authorities urge Dallas-Fort Worth residents to use extreme caution when driving in icy conditions.<\/p>\n Relying on Uber, Lyft or food delivery apps in icy weather may not be \u2018a great idea,\u2019 one observer says.<\/p>\n","protected":false},"excerpt":{"rendered":"An Arlington facility for brake parts brand Cardone has been caught in the wreckage as a dramatic bankruptcy…\n","protected":false},"author":2,"featured_media":148370,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[150,152,151,10448,294],"class_list":{"0":"post-148369","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-arlington","8":"tag-arlington","9":"tag-arlington-headlines","10":"tag-arlington-news","11":"tag-autos","12":"tag-crime"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/posts\/148369","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/comments?post=148369"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/posts\/148369\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/media\/148370"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/media?parent=148369"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/categories?post=148369"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/tags?post=148369"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"Traffic](\"https:\/\/www.newsbeep.com\/us-tx\/wp-content\/uploads\/2026\/02\/GFKTKBBM6JFFFP6T5AAJHO4G64.jpg\")
Last-minute \u2018lifeline\u2019 doesn\u2019t reach Arlington<\/p>\n![\"Motorists](\"https:\/\/www.newsbeep.com\/us-tx\/wp-content\/uploads\/2026\/02\/TIH7RGSAZ5AQXHEEHT2MU5BMPA.jpg\")
<\/a>Snow, sleet have coated D-FW streets. Here\u2019s how to drive on icy roads \u2014 if you have to<\/a><\/p>\n![\"A](\"https:\/\/www.newsbeep.com\/us-tx\/wp-content\/uploads\/2026\/02\/6EXMTFROKBAF3M63I77PEMYODM.jpg\")
<\/a>Doordash suspends operations as winter storm bears down on D-FW<\/a><\/p>\n