Hopkins Manufacturing’s parent company has secured over $1 billion in financing as it begins the bankruptcy protection process, but it has also drawn federal attention and seen the departure of its founder.
First Brands LLC filed Chapter 11 paperwork in Texas late last month and has announced a $1.1 billion debtor-in-possession financing package involving a group of “cross-holders,” including most of the company’s first-lien debt holders. With its bankruptcy filing, however, First Brands listed almost $12 billion in debt and less than $10 billion in assets.
Bloomberg also says First Brands has admitted it can’t find over $2 billion related to off-balance sheet financing — and with that in mind, the US Trustee’s Office is now seeking an independent investigation, saying “serious allegations of fraud, dishonesty, incompetence, misconduct or mismanagement” mean a special examiner is needed soon. First Brands has appointed an independent committee to look into financial irregularities.
Meanwhile, Patrick James, who founded First Brands in 2013, resigned this past Monday and was replaced by Charles Moore, who will be serving as chief restructuring officer.
First Brands LLC bought Hopkins from ONCAP in late 2023 after ONCAP had bought Hopkins in 2011, and it is still unclear how the First Brands bankruptcy process affects Hopkins operations. Hopkins has been based in Emporia since 1953 and listed itself as the top seller of towing electrical products, snow and ice tools, vehicle cleaning products and fluid management tools in North America before becoming part of 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.
Another bankruptcy hearing will be Oct. 29. The US Trustee’s request for an external examiner may see a ruling at that hearing.
