The parent company of Emporia’s Hopkins Manufacturing is likely filing for Chapter 11 bankruptcy protection soon.
First Brands LLC bought Hopkins from ONCAP in late 2023 after ONCAP had bought Hopkins in 2011. Numerous business financial websites say First Brands is seeking a minimum $1 billion loan to keep operating as it begins reorganizing, with a filing possible as soon as next week. First Brands is carrying $6 billion in debt, and Transport Topics says there have been some conversations about a debtor-in-possession loan structure to keep the conglomerate operating after it files for bankruptcy. Transport Topics and others also say the potential loan needed to keep First Brands afloat has grown from initial estimates of around $625 million.
S&P Global Ratings lowered First Brands’ credit rating from B+ to CCC+ earlier this week, mentioning concerns about negative cash flow and over $4 billion in first-lien loans coming due in March 2027. Yahoo Finance says there are concerns about financing arrangements with interest rates above 30 percent.
How this affects Hopkins operations remains to be seen. Hopkins has been based in Emporia since 1953 and has said it is the top seller of towing electrical products, snow and ice tools, vehicle cleaning products and fluid management tools in North America. The company had made several product acquisitions or company acquisitions per year for years before being absorbed into First Brands.
As of the latest report to the Regional Development Association of East Central Kansas, Hopkins employed around 160 employees at the start of this year.
