NRI PULSE STAFF REPORT
Cleveland, OH, October 23, 2025: Born in Kuala Lumpur, Malaysia, and educated in Ohio, Indian-origin businessman Patrick James built a sprawling American auto-parts empire over three decades through aggressive acquisitions and complex financing. Now, the company he created, First Brands Group LLC, has filed for Chapter 11 bankruptcy, leaving creditors and employees facing one of the largest industrial collapses of the year.
A global brand built through acquisitions
Patrick James, who moved to the United States for college at the College of Wooster in Ohio, began acquiring small manufacturing firms in the 1990s through his holding company, Crowne Group LLC. Over time, Crowne bought several legacy auto-parts makers, including TRICO Products, a leading windshield-wiper manufacturer, and later FRAM, Autolite, and Raybestos.
In 2020, Crowne Group was rebranded as First Brands Group to unify its growing portfolio of aftermarket automotive products. Under James’s leadership, the company expanded internationally, with operations in North America, Europe, and Asia.
Rapid expansion, hidden complexity
Industry analysts long viewed First Brands as a model of private-equity-style consolidation in the automotive aftermarket. But much of its growth was fueled by non-traditional, private-credit financing rather than standard bank lending. The company relied heavily on receivables and inventory factoring, borrowing against customer invoices to raise cash for further acquisitions.
By mid-2025, cracks began to appear. Lenders and regulators questioned whether some receivables had been double-pledged as collateral. According to The Financial Times and Reuters, the U.S. Trustee overseeing the bankruptcy has requested an independent examiner to investigate the company’s accounting and off-balance-sheet financing practices.
Bankruptcy filing and leadership change
On September 25, 2025, First Brands Group filed for Chapter 11 protection in Delaware bankruptcy court, reporting liabilities between $10 billion and $50 billion. The filing allows the company to continue operating while it restructures under court supervision.
On October 13, Patrick James resigned as chief executive officer, and the company appointed Charles Moore, its Chief Restructuring Officer, as interim CEO. A company statement said the leadership change would ensure “independent oversight” during reorganization.
A cautionary tale for private credit
The downfall of First Brands has sent ripples through the private-credit industry, which had financed much of its debt. Financial institutions including Jefferies and Santander have disclosed exposure to First Brands-related receivables facilities.
Observers say the case underscores how opaque lending structures and rapid, debt-driven expansion can mask underlying financial fragility.
“First Brands is a textbook example of how aggressive leverage and private financing can magnify both growth and risk,” said one restructuring attorney following the case.
The road ahead
The company’s bankruptcy proceedings will determine whether its iconic brands — including FRAM and TRICO — can survive under new ownership or if assets will be sold to satisfy creditors.
For Patrick James, the once-reclusive entrepreneur who built a global industrial group from a string of acquisitions, the filing marks a dramatic turn. His rise from Malaysia to the helm of a U.S. manufacturing giant now stands as both a story of ambition and a warning about the dangers of unchecked financial engineering.
