Drawtite and Reese Owner Filing for Bankruptcy
Thread Starter
|
More Turbo
Joined: Jun 2024
Posts: 629
Likes: 189
From: Southeastern US
Drawtite and Reese Owner Filing for Bankruptcy
Wow, I had no idea this company owned so many brand name companies:
https://www.ttnews.com/articles/first-brands-bankruptcy
I hope it doesn't impact the quality of their hitches and such. And apparently they have no plan either:
https://www.ttnews.com/articles/firs...nkrupt-no-plan
https://www.ttnews.com/articles/first-brands-bankruptcy
I hope it doesn't impact the quality of their hitches and such. And apparently they have no plan either:
https://www.ttnews.com/articles/firs...nkrupt-no-plan
Logistics Pro
Joined: Jan 2010
Posts: 4,100
Likes: 1,635
This happens ANY time a conglomerate gets too big - eventually debt catches up for one reason or another (perhaps several brands aren't doing too good and the others are propping it up, perhaps it's mismanagement, hard to say). The company I work for was part of a major conglomerate about two decades ago, and was saved from going out of business when a local group of investors (employees at the time) got together and purchased it and another company to keep them alive. GM was once the same way - owned train engine manufacturing, Frigidaire, etc. etc. and had to spin it all off.
This particular time smells of mismanagement (or over-management, too many chiefs to pay), because many of those brands should NOT be doing poorly at all.
This particular time smells of mismanagement (or over-management, too many chiefs to pay), because many of those brands should NOT be doing poorly at all.
Cargo Master
Joined: Mar 2007
Posts: 2,825
Likes: 1,030
Like many business' it's a race to the bottom. We consumers demand cheap prices and China supplies those demands. For legitimate business' to keep up, they must lower their prices [and quality] to compete with China. Eventually, the entire business model crashes. Like all of us, if our investment is not going as planned, we pull our money out. So, people like to blame the shareholders, but as a business, they are more important than most other demands. Once the share holders pull their money, then the business has no money to keep the doors open.
I know this is simple thinking because there are probably a lot more issues involved. I still blame the public that demands to pay nothing for good parts and will think they are getting ripped off when a good part is sold at a fair profit.
I know this is simple thinking because there are probably a lot more issues involved. I still blame the public that demands to pay nothing for good parts and will think they are getting ripped off when a good part is sold at a fair profit.
Tuned
Joined: Nov 2019
Posts: 304
Likes: 208
From the press.....paraphrased. "Monday First Brands Group filed Chapter 11 bankruptcy.
The auto-parts supplier took advantage of low interest rates last decade during the pandemic to go on a debt-financed shopping spree. privately-owned supplier used complex and off-balance sheet arrangements to buy manufacturers of brakes, filters, towing parts, lamps...
debt load wasn’t a problem long as creditors were willing keep lending and roll over debt. But press reports this month that Apollo Global Management had taken short position against First Brands’ debt spooked investors and cut off its access to credit.
The Cleveland-based company’s bankruptcy filing identifies liabilities between $10 billion and $50 billion and assets between $1 billion and $10 billion. Creditors take big haircuts, though they received hefty compensation for risk. The Financial Times reported last week rates on some short-term debt from off-balance sheet vehicles exceeded 18%."
The auto-parts supplier took advantage of low interest rates last decade during the pandemic to go on a debt-financed shopping spree. privately-owned supplier used complex and off-balance sheet arrangements to buy manufacturers of brakes, filters, towing parts, lamps...
debt load wasn’t a problem long as creditors were willing keep lending and roll over debt. But press reports this month that Apollo Global Management had taken short position against First Brands’ debt spooked investors and cut off its access to credit.
The Cleveland-based company’s bankruptcy filing identifies liabilities between $10 billion and $50 billion and assets between $1 billion and $10 billion. Creditors take big haircuts, though they received hefty compensation for risk. The Financial Times reported last week rates on some short-term debt from off-balance sheet vehicles exceeded 18%."
Trending Topics
Fleet Mechanic
Joined: Jul 2019
Posts: 1,649
Likes: 695
What I got out of the linked articles is the owner bought these various companies with debt. The owner has pulled cash out leaving a debt burden the brands can no longer sustain. The whole thing then collapses, and the lenders or creditors are left holding the bag. The owner walks away with the cash he has received over the years.
FTE Stories
Ford Trucks for Ford Truck Enthusiasts
10 Things Every Truck Owner NEEDS (2026 Edition)
Michael S. Palmer
Rezvani's Latest Post-Apocalyptic Monster Is a Ford F-150 Raptor Underneath
Verdad Gallardo
Top 10 Most Expensive Ford Trucks Ever Sold on Bring a Trailer
Joe Kucinski
2027 Ford Super Duty Buyer's Guide (Every Model, Engine, & Package)
Brett Foote
Top 10 Ford Truck Tragedies
Joe Kucinski
AEV FXL Super Duty - the Super Duty Raptor Ford Doesn't Make
Brett Foote
Lobo Vs Lobo: Proof the F-150 Lobo Should Be Even Lower!
Michael S. Palmer
Ford's 2001 Explorer Sportsman Concept Looks For a New Home
Verdad Gallardo
10 Best Ford Truck Engines We Miss the Most!
Joe Kucinski
Tuned
Joined: Nov 2019
Posts: 304
Likes: 208
more......
"Some participants in the company’s supply-chain financing programs also became aware that certain auto inventory that served as collateral may have been transferred out of their reach, some of the people said. First Brands has brought on independent directors to examine such issues and others stemming from the off-balance-sheet arrangements, they said."
Gotta wonder about the worker's morale at Fram Filters these days....might not be my first filter choice.
"Some participants in the company’s supply-chain financing programs also became aware that certain auto inventory that served as collateral may have been transferred out of their reach, some of the people said. First Brands has brought on independent directors to examine such issues and others stemming from the off-balance-sheet arrangements, they said."
Gotta wonder about the worker's morale at Fram Filters these days....might not be my first filter choice.
Last edited by Black Buzzard; Sep 29, 2025 at 06:50 PM.
Logistics Pro
Joined: Jan 2010
Posts: 4,100
Likes: 1,635
What I got out of the linked articles is the owner bought these various companies with debt. The owner has pulled cash out leaving a debt burden the brands can no longer sustain. The whole thing then collapses, and the lenders or creditors are left holding the bag. The owner walks away with the cash he has received over the years.
Mountain Pass
Joined: Jul 2020
Posts: 104
Likes: 101
What I got out of the linked articles is the owner bought these various companies with debt. The owner has pulled cash out leaving a debt burden the brands can no longer sustain. The whole thing then collapses, and the lenders or creditors are left holding the bag. The owner walks away with the cash he has received over the years.
Cargo Master
Joined: Feb 2004
Posts: 2,070
Likes: 169
From: Central Texas
I played the long game and doubled my investments every 7 - 10 years in the market. I retired 6 mos ago at 59.5y/o as a debt free multi millionaire. I was a simple manufacturing engineer, (i.e. didn't make a ton of money) at a fortune 500 company for 34 years. It can be done.