First Brands to Close Three Texas Facilities, Cut 572 Jobs

Auto parts supplier faces bankruptcy and fraud allegations as it shutters Brownsville operations

Published on Mar. 9, 2026

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First Brands Group, a major automotive components manufacturer, announced plans to permanently close three facilities in Brownsville, Texas, resulting in the layoff of 572 workers. The closures come as the company faces mounting turmoil, including a federal fraud case against its founder and bankruptcy proceedings.

Why it matters

The closure of First Brands' Texas operations represents a significant economic blow to the Brownsville area, with hundreds of jobs being eliminated. The company's struggles also highlight the challenges facing the auto parts industry, which has been impacted by supply chain issues and changing consumer demands.

The details

First Brands plans to shut down its manufacturing plant, distribution center, and another facility in Brownsville, resulting in the layoff of 572 workers. The largest impact will be at the company's manufacturing plant, where 346 employees will lose their jobs. Another 183 workers will be laid off from the Titan Distribution Center, and 43 employees will be let go from the ASC facility.

  • The layoffs are scheduled to take effect on April 30, 2026, when the facilities are expected to permanently close.
  • Federal prosecutors recently charged First Brands' founder, Patrick James, and his brother, Edward, in a fraud case related to billions of dollars in financing.

The players

First Brands Group

A global auto-parts supplier making premium aftermarket components, including brakes, filters, wipers, ignition parts, and towing accessories.

Patrick James

The founder of First Brands Group, who was recently charged by federal prosecutors in a sweeping fraud case.

Edward James

The brother of Patrick James, who was also charged in the federal fraud case against First Brands Group.

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What they’re saying

“What has happened to the business of First Brands is a tragedy, but the narrative that the blame for this should fall on Patrick James is false. Mr. James stepped away from First Brands in early October. Since that time, the company has burned through the $1.1 billion loan it received at the start of the Chapter 11 process. The strategy of relentlessly attacking Mr. James and the company's financing arrangements has led to a loss of revenues and customers as well as factory closures that have cost employees their jobs. Making matters even worse, the company has fired employees without notice. Creating a public spectacle has been value depletive to the company Patrick James and his management team took years to build.”

— Spokesperson for Patrick James (Chron)

What’s next

The judge overseeing First Brands' bankruptcy proceedings will likely need to approve the closure of the Brownsville facilities and the associated layoffs.

The takeaway

The closure of First Brands' Texas operations highlights the challenges facing the auto parts industry, as well as the broader economic impact of corporate turmoil and bankruptcy. The situation also raises questions about the role of leadership and accountability in the downfall of once-successful companies.