First Brands founder Patrick James steps down as CEO

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Patrick James, the low-profile founder of First Brands Group, has resigned as chief executive of the bankrupt auto parts maker.

In a statement on Monday, First Brands said that Charles Moore, an executive from turnaround advisory firm Alvarez & Marsal, had agreed to take James’s place as “interim chief executive”.

Moore, who was already overseeing First Brands’ messy bankruptcy as chief restructuring officer, said that the sprawling group has a “strong foundation of globally recognised brands and a resilient position in the after-market automotive industry”.

A spokesperson for James said that he “has always prioritized the company’s interests above his own, and he remains deeply committed to the success of the business and the maximization of value for the benefit of its customers, suppliers, employees and lenders”.

While James initially agreed to stay on as chief executive through the bankruptcy, the Financial Times reported last week that pressure was building on the 61-year-old mogul to step down, given the billions of dollars in losses facing the group’s lenders and probes into its use of off-balance sheet financing.

His spokesperson had told the FT last week that the First Brands founder was considering “relinquishing his role”.

This is a developing story