First Brands Moves Forward with Chapter 11 Bankruptcy

The company that shuttered Jasper Rubber and other facilities across the country has filed key bankruptcy documents outlining its path through Chapter 11, and its strategy aimed at recovering money for creditors. 

After its surprise bankruptcy filing in September 2025, First Brands Group ceased operations at multiple companies in their portfolio. Among those was Jasper Rubber, which delivered WARN notices to employees on February 27 of this year before closing its doors at the end of April. 

First Brands executives Patrick and Edward James were indicted on charges of conspiracy to commit money laundering, conspiracy to commit wire fraud, and multiple charges of bank fraud and wire fraud. They were accused of defrauding lenders by concealing liabilities, falsifying financial statements, and simultaneously pledging loan collateral multiple times. Under new management and operating as debtor in possession, the company has filed suit against Patrick James and related entities. 

According to documents obtained by WITZ under the Freedom of Information Act, a notice was filed on June 5, 2026 in the bankruptcy case of First Brands Group, LLC and its affiliated debtors. It informs creditors and other interested parties that the company has taken the next major step toward exiting Chapter 11 bankruptcy. On June 5, the debtors filed their proposed Chapter 11 reorganization plan, outlining the company’s plans for restructuring and addressing creditor claims. They also filed a Disclosure Statement, which explains the plan and provides pertinent information that creditors will need before voting on the proposed action. 

Also on June 5, the debtors filed an emergency motion seeking conditional approval of the Disclosure Statement with a date of July 20 for any objections to the plan. They proposed a final hearing on July 28 to consider approval of the Disclosure Statement and confirmation of the plan. A hearing on the Disclosure Statement Motion was scheduled for June 12, 2026, before Bankruptcy Judge Christopher Lopez in Houston. 

According to Reuters, the judge approved First Brands Group’s revised disclosure statement and denied the U.S. Trustee's motion to convert the bankruptcy to a Chapter 7 liquidation managed by a court-appointed trustee. The finding could allow FBG to move forward with a liquidation plan that would fund the lawsuits against the company's indicted executives to try to recover funds for creditors. 

After First Brands’ sales negotiations suddenly collapsed in February, the company responded by abruptly laying off employees of companies in their portfolio. Many of these layoffs came without warning and were “effective immediately,” triggering an investigation into possible WARN notice violations. Champion Labs in Albion, Illinois and longtime manufacturer Jasper Rubber were among the multiple facility shutdowns. As First Brands attempts to build creditor support for its litigation strategy, the communities left behind after the shock closures are still trying to rebuild – on their own. 
 
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 - Drew Hasselbring