The Journal. Missing Billions and a Secretive CEO: The First Brands Bankruptcy
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Oct 27, 2025 
Alexander Gladstone, a WSJ reporter who investigated First Brands Group, dives into the shocking bankruptcy of the auto-parts maker. He reveals how forensic accountants uncovered hidden debts exceeding $12 billion and discusses the complex financing strategies that led to this financial mess. Gladstone connects external pressures like tariffs to the company's decline and addresses Jefferies' controversial role in the situation. The conversation raises crucial questions about due diligence in business relationships and the broader implications for the financial system.
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Hidden Scale Of The Collapse
- First Brands' bankruptcy revealed almost $12 billion of debt and widespread surprises in its finances.
- Forensic accountants called the situation a "hot mess" that alarmed lenders and Wall Street.
The Secretive Founder
- Patrick James built First Brands from modest roots into a multi-brand auto supplier headquartered around Cleveland.
- He kept tight control, owning 100% of equity while staying intensely private and hard to photograph.
Off-Balance-Sheet Debt Masked Risk
- Almost half of the nearly $12 billion debt wasn't on First Brands' balance sheet due to complex financing structures.
- Investigators found factoring and off-balance-sheet entities hid large portions of the company's obligations.