A MAJOR shakeup in the auto supplier industry could leave professional and home mechanics alike scrambling for new preferred parts.
The fallout of the latest financial news is incredibly widespread, covering well over a dozen household name auto parts brands.
Car repair could get more complicated[/caption]
Major brake parts brands are affected by the latest financial happenings[/caption]
Makers of key engine components like pumps and filters are also involved[/caption]
Last Thursday, Carnaby Capital Holdings, LLC, the financial intermediary for various automotive parts brands under the First Brands Group umbrella, filed for Chapter 11 bankruptcy in Texas courts.
Carnaby and the Michigan-based First Brands Group (FBG) are reporting between half-a-billion to $1 billion in assets, stacked against $1 billion to $10 billion in liabilities, per court filings for the Chapter 11 process.
The company’s “use of off-balance-sheet debt tied to invoices and inventory” resulted in as much as $10 billion being raised, per the Financial Times. While this isn’t strictly illegal, it is misleading information for lenders.
Parts brands under FBG’s ownership include Raybestos, Centric Parts, StopTech, Fram, Luber-finer, Trico, Anco, Michelin licensed wiper blades, AirTex, Carter, Autolite, StrongArm, Carlson, and Cardone.
These companies sell various products, including complete brake replacement systems, specific brake components, filtration products, fuel and water pumps, wiper blades, lift supports, and new and remanufactured general replacement parts.
FBG also has a towing and trailering portfolio composed of companies such as Reese, Drawtite, Bulldog, Tekonsha, Fulton, Westfalia, Hopkins universal owned and licensed brands, and Philips licensed aftermarket lighting.
The company is attempting to restructure its finances, and is seeking a debtor-in-possession loan of roughly $1.25 billion to support operations during this time.
This money would include efforts to make the above brands and the parts they offer available without interruption as it refinances.
Lazard, Alvarez & Marsal, and Weil, Gotshal, & Manges have been hired by First Brands Group to navigate the bankruptcy proceedings and develop a viable plan for debt restructuring.
Despite the recency of these events, creditors and financial analysts alike saw the writing on the wall for FBG several months ago.
July 2025 saw Fitch Ratings downgrade the company to a ‘B’ due to increased refinancing risk based on its then-current loans, per TheStreet.
July also saw FBG launch a transaction to refinance its entire debt portfolio. This refinancing effort would seek to take out several additional loans prior to its first lien debt going current in March 2026.
However, in August, it canceled the planned $6 billion loan refinancing due to lender concerns over its financial transparency.
FBG’s debts saw their value tank in September, trading for 45 to 46 cents on the dollar in best case scenarios. First Brands Group hired the above firms on September 22, and filed for Chapter 11 bankruptcy three days later.
How to avoid being scammed at the repair shop
Motorautocar and the AARP have east-to-follow tips to avoid being scammed by a repair shop.
- Motorautocar suggests asking to see parts that have been replaced or to see old fluids after they were swapped. If the shop says that’s impossible or refuses, it could be a sign it wasn’t done.
- Ask for a walkaround of the repairs that were done. Most mechanics are happy to show you what was done in the shop. While being walked around, look for evidence of repairs like the area being cleaned off, shiny new parts, tool marks on the bolts, tools being out or nearby, etc.
- Before taking your car in, look at other customer reviews on Google, Yelp, or Facebook. Many customers only review a company if they have negative reviews, so keep an eye out.
- For costly repairs, consider getting multiple opinions. If two to three shops suggest identical repairs, it’s likely to be true.
- Test a new shop with minor issues you’re aware of to see if they add anything to the repair bill.
- If applicable, bring someone to the shop who knows about cars to have them double-check or read a repair bill.
- Get everything on paper. Not only is it important for your repair records, but it can help protect you if legal measures are necessary.
Source: Motorautocar, AARP
If the company is unable to successfully restructure its debt and must go out of business, it will likely transition to Chapter 7 bankruptcy, at which point the various brands it owns would be sold off to recover debt.
This fire sale would likely lead to a slight interruption in the supply chain for the brands in question due to factors such as operational transition and contract negotiation.
First Brands Group did not immediately return The U.S. Sun’s request for comment.
DEBT DILEMMAS
Recent weeks have seen other automotive industry giants forced to take similar action, such as Texas-based Tricolor Auto Group filing for Chapter 7 bankruptcy earlier this month.
July saw AutoCanada all but fully exit the American market, citing reasons such as paying down debt and focusing on its home turf.
In June, car parts supplier Marelli Holdings Co. Ltd. filed for Chapter 11 bankruptcy in Delaware courts. The company is most notable for supplying parts for Nissan and the Stellantis group, the latter owning a number of iconic brands.
