Brake Parts Supplier Shuts Down, Leaving Hundreds Jobless

Employees say they were told their jobs were safe before the sudden closure

Published on Feb. 7, 2026

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Brake Parts Inc., a brake parts supplier in McHenry, Illinois, has permanently closed its doors, leaving 389 employees out of work. Employees say they were repeatedly assured their jobs were safe, even after the parent company, First Brands Group, filed for Chapter 11 bankruptcy in September. However, the company's founder and former CEO have now been indicted on fraud charges, and the company is being run as a 'Ponzi scheme' according to authorities.

Why it matters

The sudden closure of Brake Parts Inc. has had a significant impact on the local community, with hundreds of workers now facing unemployment. The situation also raises questions about corporate transparency and accountability, as employees claim they were misled about the company's financial troubles.

The details

Brake Parts Inc. operated out of a 267,000-square-foot facility in McHenry and had gone through bankruptcy before. Employees say they were told the company would be restructured and no one would lose their jobs, even after the parent company filed for bankruptcy. However, on Tuesday, workers received WARN Act notices informing them of the permanent closure and their termination effective February 3, 2026. The company cited 'a number of additional unforeseeable business circumstances,' including major customers withholding payments and unwilling to support the company.

  • In September 2025, First Brands Group, the parent company of Brake Parts Inc., filed for Chapter 11 bankruptcy.
  • On January 26 and 29, 2026, the company sent emails to some employees informing them they would be furloughed from January 26 through February 8.
  • On February 3, 2026, Brake Parts Inc. permanently closed its doors, and employees received termination notices.

The players

Brake Parts Inc.

A brake parts supplier that operated a 267,000-square-foot facility in McHenry, Illinois and has now permanently closed.

First Brands Group

The parent company of Brake Parts Inc. that filed for Chapter 11 bankruptcy in September 2025.

Patrick James

The founder and former CEO of First Brands Group, who has been indicted on multiple fraud charges.

Edward James

The former senior executive of First Brands Group and brother of Patrick James, who has also been indicted on fraud charges.

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What they’re saying

“They told us, point blank, they would not lay us off and would not be shutting the doors, even after the parent company, First Brands Group, filed for Chapter 11 bankruptcy in September.”

— Thomas Croissant, Former Brake Parts Inc. employee (shawlocal.com)

“Management did not inform employees about the bankruptcy at all. During weekly pre-shift meetings, when employees asked questions, team leaders and work leaders would avoid answering and instead direct employees to ... the plant manager. Those questions were never addressed.”

— Robert Lemker, Former Brake Parts Inc. employee (shawlocal.com)

What’s next

The judge will decide on Tuesday whether to allow the James brothers, who have been indicted on fraud charges, to remain out on bail.

The takeaway

The sudden closure of Brake Parts Inc. and the fraud allegations against the company's leadership underscore the importance of corporate transparency and accountability, especially when it comes to the livelihoods of hundreds of workers.