First Brands Group, LLC has announced the permanent closure of its Champion Labs facility in Albion.
In a news release issued today, the company said the shutdown begins immediately, February 23rd, with as many as 1,000 employees notified that their employment is terminated effective today. Because the facility is closing in its entirety, bumping rights will not apply.
The company says it regrets the decision and described the closure as permanent.
First Brands Group stated it spent several months exploring options to avoid shutting down the Albion operation. Those efforts included seeking additional capital and actively marketing the Champion Laboratories business in hopes of finding a buyer willing to continue operations and retain the existing workforce. Officials said announcing a potential closure earlier could have jeopardized negotiations, as interested buyers were evaluating whether they could keep the plant running.
According to the release, a serious bidder had recently advanced in the process, with both sides exchanging draft purchase agreements. Company leaders believed they were close to reaching a deal that would have prevented the closure.
However, the sale effort ultimately collapsed. First Brands Group said certain facilities had been relying on outside financial support to maintain operations during negotiations. That funding was unexpectedly withdrawn before a transaction could be completed. The loss of that support significantly reduced the company’s valuation and eliminated any remaining viable options for a sale.
In a statement, the company said that without a completed sale, it does not have access to capital markets or sufficient cash reserves to continue operating.
First Brands Group emphasized that the decision to close was made only after exhausting all alternatives and once it became clear there was no path forward, citing the sudden withdrawal of funding and changes in the sale process as unforeseen developments that forced the expedited shutdown.