First Brands’ bankruptcy, linked to alleged fraud by its executives, has prompted the closure of several Ohio facilities, impacting over 1,200 jobs statewide.
Fraud Allegations Lead to Ohio Job Losses
Cleveland-based First Brands is closing its downtown corporate office and multiple facilities across Ohio following the indictment of three top executives for fraud and money laundering, which occurred roughly one month prior to the closure announcements.
According to WARN notices filed with the Ohio Department of Job and Family Services, more than 1,200 employees will be affected by the closures. On February 23, the company initiated a “mass layoff” at its Cleveland corporate office, immediately terminating 146 employees, including 17 account managers and nine zone managers.
Four days later, First Brands announced the closure of the Cleveland corporate office, along with three other facilities statewide, effective April 30 of this year. The company stated it had pursued a sale and additional funding but ultimately made the difficult decision to close the facilities due to financial distress.
The closures will impact facilities in Cuyahoga, Darke, Seneca, and Wood counties. Specifically, 302 workers at the TMD Bowling Green facility, 407 at the TMD Tiffin facility, and 302 at the FRAM Greenville facility will lose their jobs. An additional 110 employees will be impacted by the Cleveland corporate office closure.
Federal Investigation Underway
Federal prosecutors have charged three Northeast Ohio men – Patrick James, Edward James, and Peter Andrew Brumbergs – with multiple counts of fraud and money laundering. Patrick James founded First Brands and served as its CEO, while Edward James was a senior vice president.
Prosecutors allege the James brothers engaged in a years-long scheme to mislead lenders, including submitting false invoices, pledging collateral multiple times, and falsifying financial statements. Peter Andrew Brumbergs has already pleaded guilty and is cooperating with the government.
U.S. Attorney Jay Clayton stated the James brothers allegedly obtained billions of dollars for First Brands and millions for themselves through fraudulent practices. U.S. Attorney David M. Toepfer emphasized the devastating impact such actions have on employees and the broader economy.
Frequently Asked Questions
What caused First Brands to file for bankruptcy?
According to federal prosecutors, a years-long fraud scheme orchestrated by the company’s top executives led to First Brands’ bankruptcy in September 2025.
How many employees will be affected by the facility closures?
More than 1,200 employees statewide will be impacted by the closure of four First Brands facilities in Ohio.
What charges are the former executives facing?
Patrick James and Edward James are facing charges including conspiracy to commit wire fraud and bank fraud, wire fraud, bank fraud, and conspiracy to commit money laundering. Peter Andrew Brumbergs has pleaded guilty to similar charges.
As First Brands navigates its bankruptcy proceedings, what long-term effects will these closures have on the Ohio automotive parts supply chain and the communities where these facilities were located?