Ethicast Reacts: E&C Lessons from the First Brands Bankruptcy

When aftermarket auto parts giant First Brands abruptly filed for bankruptcy in September 2025, it stunned the market, but the collapse was years in the making. In this Ethicast episode, Ethisphere’s Chief Strategy Officer Erica Salmon Byrne unpacks how debt-fueled acquisitions, opaque asset-based financing, and ignored red flags created the perfect storm, ultimately leading to lawsuits, investigations, and allegations of large-scale fraud. She also breaks down what E&C leaders must take from this moment, as fears of broader contagion ripple through the shadow lending system and highlights why strong governance and compliance oversight remain non-negotiable.