First Brands Group Subsidiaries Closure Sparks Concern in Juárez Maquiladora Industry
Ciudad Juárez, February 17, 2026 – The closure of First Brands Group subsidiaries in Ciudad Juárez, a development stemming from the group’s bankruptcy declaration in September 2025, has ignited significant apprehension within the local maquiladora industry. The situation is characterized by seized facilities, with actuaries from the Labor Court currently reviewing assets and ensuring liquidation guarantees for affected employees.
The impact of this closure extends beyond the immediate facilities, casting a shadow of uncertainty over the broader manufacturing landscape in Ciudad Juárez. The maquiladora sector, a cornerstone of the region’s economy, is closely monitoring the situation as stakeholders assess potential ripple effects.
Background of the Closure
The financial difficulties of First Brands Group culminated in a bankruptcy declaration in September 2025. This global corporate event has had direct consequences for its operations in Ciudad Juárez, leading to the cessation of activities at its local subsidiaries. One notable example is Brake Parts Inc (BPI), which ceased operations on January 25, citing a lack of liquidity to continue, following the bankruptcy of its parent company.
This closure has left a substantial number of employees without work. In response, a job fair was organized for over 1,300 former employees of First Brands Group, aiming to mitigate the immediate employment crisis. However, the long-term implications for the local workforce and the maquiladora industry as a whole remain a pressing concern.
Ongoing Legal and Financial Actions
Currently, the facilities of the affected subsidiaries are under the control of Labor Court actuaries. These officials are engaged in a meticulous process of inventorying machinery and assets. This procedure is crucial for ensuring that the assets are properly accounted for and that the liquidation process adheres to legal requirements, particularly concerning the payment of severance and other benefits to former employees.
The legal framework surrounding bankruptcy and labor rights in Mexico dictates a structured approach to such closures. The involvement of the Labor Court underscores the gravity of the situation and the commitment to safeguarding the rights of the affected workers. The review of assets and guarantees is a critical step towards resolving the financial obligations of the bankrupt entity.
Wider Economic Implications for Ciudad Juárez
The closure of First Brands Group subsidiaries is not an isolated incident in the economic landscape of Ciudad Juárez. Recent data indicates a broader trend of company deregistration. Since October 2023, Ciudad Juárez has seen 746 companies deregistered with the Mexican Social Security Institute (IMSS). While the reasons for these deregistrations are varied, ranging from economic pressures to strategic business decisions, the cumulative effect raises questions about the stability and growth trajectory of the local business environment.
The maquiladora industry, known for its significant contribution to employment and export revenues, is particularly sensitive to such developments. The departure of major players like First Brands Group can lead to a loss of specialized skills, disruption in supply chains, and a potential decrease in foreign investment attractiveness if not managed effectively.
Community and Industry Response
The local community and industry leaders are grappling with the implications of this closure. There is a palpable concern about job security and the economic future of the region. The organization of job fairs, while a necessary immediate response, highlights the need for more sustainable strategies to support workers affected by corporate downturns.
Industry associations and government bodies are likely to be engaged in discussions to understand the root causes of such closures and to develop preventative measures or support mechanisms for companies facing financial distress. The focus will be on maintaining the competitiveness of the maquiladora sector and ensuring a stable employment environment for its workforce.
Future Outlook
The resolution of the First Brands Group bankruptcy and the subsequent liquidation of its assets in Ciudad Juárez will be a closely watched process. The outcome will not only determine the fate of the affected facilities and employees but also serve as a precedent for how similar situations might be handled in the future.
The incident underscores the dynamic nature of the global economy and its localized impacts. For Ciudad Juárez, it presents a challenge to reinforce its economic resilience, diversify its industrial base where possible, and strengthen support systems for its workforce in times of economic uncertainty.
Source: oem.com.mx
