First Brands Group is exploring placing some of its units into Chapter 7 bankruptcy liquidation as cash reserves dwindle, according to sources familiar with the matter. The company and certain creditors are weighing this drastic step amid financial pressures that have left the business struggling to maintain operations.

Chapter 7 bankruptcy would involve selling off assets to pay creditors, marking a significant escalation from the Chapter 11 restructuring the company has been pursuing. This potential shift signals that First Brands may be running out of options to reorganize its debt and continue as a going concern. The move would affect specific units within the broader organization rather than the entire company.

Sources indicate the discussions are ongoing, with no final decision made yet. The situation reflects broader challenges facing the company as it navigates its financial difficulties. A transition to Chapter 7 would represent a major shift in strategy and could have significant implications for employees, customers, and the company's market position.