Patrick James is reportedly considering stepping down as CEO as First Brands navigates its own financial collapse.
The turmoil at First Brands Group, the auto parts manufacturer behind household names like FRAM, Rain-X, and Raybestos, is deepening. Reports emerging from company insiders and industry analysts suggest that CEO Patrick James is seriously considering stepping down, as the company wrestles with the fallout of its ongoing bankruptcy crisis.
For months, First Brands has been navigating a storm of debt, supply-chain issues, and declining market share, culminating in a bankruptcy filing that stunned both investors and suppliers. Once viewed as a reliable player in the automotive aftermarket industry, the company’s downfall has exposed the fragile economics of legacy manufacturing in an era increasingly defined by electrification, automation, and shifting consumer habits.
Now, as First Brands attempts to stabilize under court supervision, its embattled CEO may be preparing his own exit — a move that could mark both the end of an era and the beginning of another uncertain chapter for the company.
According to people close to the matter, Patrick James has been in ongoing discussions with the board and external advisers about the “timing and optics” of his departure. While no final decision has been announced, multiple sources describe the mood within the company’s leadership ranks as “resigned but restless,” suggesting that James’s exit is seen as increasingly inevitable.
The 57-year-old executive, who took the helm in 2018, once championed an ambitious vision to make First Brands a modern, global leader in automotive performance products. Under his leadership, the company expanded aggressively through acquisitions — a strategy designed to consolidate its presence across filters, wipers, and fluid management systems. For a while, it worked. Revenues grew, product lines diversified, and First Brands gained visibility in major retail outlets.
But the momentum began to fade in 2023, when rising production costs, slowing demand in the aftermarket sector, and inventory build-ups strained margins. By early 2025, the financial stress became impossible to ignore. Reports surfaced of missed debt payments, vendor disputes, and internal layoffs, painting a picture of a company stretched too thin.
In July 2025, the breaking point came: First Brands filed for Chapter 11 bankruptcy protection, citing over $1.4 billion in debt and a “challenging market environment.” The announcement sent shockwaves through the industry, particularly among suppliers and retail partners who had long relied on the company’s scale and stability.
Since then, the company has been operating under a court-approved restructuring plan, seeking to reduce its debt burden and restore liquidity. Yet, progress has been slow — and morale within the company even slower. Several top executives have already departed, and internal communications suggest growing frustration among employees over leadership transparency and direction.
Patrick James, known for his measured demeanor and operational discipline, has remained publicly committed to steering the company through the storm. In recent internal meetings, he emphasized “accountability and endurance” as the company’s guiding principles. However, behind the scenes, insiders say the stress of the restructuring process — coupled with increasing pressure from creditors — has made his position increasingly untenable.
One senior executive described the atmosphere bluntly: “Patrick’s credibility took a hit the moment the bankruptcy was announced. Even if it wasn’t entirely his fault, perception matters. The board needs a reset — and so does the company.”
The board of directors is said to be evaluating succession plans, with a shortlist of interim candidates already under review. Among them are CFO Melissa Carter, who has been instrumental in overseeing the restructuring, and operations head Michael Alvarez, a 20-year veteran known for his deep ties to the manufacturing side of the business. Both are seen as capable of providing short-term stability while the company searches for a long-term replacement.
If Patrick James does step down, it will likely be positioned as a “mutual decision” to facilitate new leadership during the restructuring phase. Analysts suggest the move could even be strategic — helping reassure creditors and the bankruptcy court that First Brands is serious about transformation.
“Leadership transitions during bankruptcy are never easy,” said financial analyst Ethan Cole of MarketEdge Research. “But they can be necessary to restore trust. A fresh face at the top often helps signal to lenders and investors that the company is ready to move past mistakes and execute on recovery.”
The timing, however, couldn’t be more delicate. First Brands is in the midst of critical negotiations with suppliers and lenders over repayment terms, and any disruption at the top could either complicate those talks — or catalyze them, depending on how the change is managed.
Meanwhile, the broader auto parts sector continues to face its own set of headwinds. The shift toward electric vehicles (EVs) is reducing long-term demand for traditional filters and oil-related components, a trend that has forced legacy suppliers to adapt or perish. Companies that once relied on steady replacement cycles are now under pressure to reinvent themselves through innovation, partnerships, and digital integration — areas where First Brands has lagged.
If Patrick James steps away, his legacy will be complex. Supporters will point to his strategic acquisitions and efforts to modernize operations; critics will note that those same expansions may have accelerated the company’s debt spiral. In truth, he inherited a company already struggling to keep up with the times — and his aggressive play for scale may have simply delayed the inevitable.
For now, the question is not whether First Brands can survive, but what kind of company it will become once the dust settles. A new leader could bring fresh perspective — or face the same structural challenges that have plagued the industry for years.
As one analyst put it, “The bankruptcy was the symptom, not the disease. The next CEO will need to cure the cause — inefficiency, overextension, and an outdated business model.”
Whether Patrick James’s rumored exit turns out to be resignation, retirement, or strategic repositioning, one thing is certain: First Brands is standing at a crossroads. And as it fights to stay alive, the name of the next person to take the helm may determine whether this once-proud company has a second act — or becomes another casualty of an industry in transition.
