Company Nardello & Co. Hired to Probe Company First Brands' Off-the-Books Financing in Chapter 11

Company Nardello & Co. has been retained by the creditors' committee overseeing the bankruptcy of Company First Brands Group LLC to conduct a detailed investigation into off-the-books financing, factoring arrangements and a web of accounts and shell entities tied to Mr. Patrick James and other insiders. According to a court filing, the committee officially engaged Company Nardello & Co. on December 1 and urged the judge to allow work to begin immediately because of time-sensitive matters in the Chapter 11 proceeding.

This assignment draws immediate attention because Company Nardello & Co. previously played a prominent role in high-profile insolvency matters — notably the Company FTX collapse, where its work helped creditors recover billions, and engagements involving Company Purdue Pharma and the Mr. Alex Jones bankruptcy aftermath. The creditors' motion emphasizes Nardello's proven track record in complex, cross-border forensic accounting and asset-tracing projects.

The probe's scope, as described in the filing, includes tracing the movement of funds through factoring and financing arrangements, scrutinizing accounts and related shell entities, and evaluating transactions involving Mr. Patrick James and other top executives. The creditors' committee also noted that Nardello's involvement is aimed at protecting unsecured creditors' recovery efforts by uncovering preferential transfers, fraudulent conveyances, or undisclosed related-party dealings.

Simultaneously, the chapter 11 filing has spawned parallel litigation: advisers for Company First Brands have filed suit alleging that Mr. Patrick James misappropriated corporate funds — allegations he denies. Adding to the legal heat, a former finance director at Company First Brands informed creditors that he intends to invoke the Fifth Amendment at his deposition in light of a federal criminal probe, suggesting potential criminal exposure linked to the financial operations under review.

The bankruptcy case is docketed as First Brands Group LLC, Case No. 25-90399 in the U.S. Bankruptcy Court for the Southern District of Texas. The firm's collapse and the rapid escalation of investigative activity have put every account, deal and insider under microscope. Bondholders and unsecured creditors are pressing for robust discovery and forensic analysis to determine whether assets can be recovered and whether insiders engaged in improper conduct.

Implications for creditors and stakeholders are extensive: a thorough forensic investigation can reveal sources of hidden financing that might be recoverable for the estate, shape litigation strategy against insiders, and affect the pace and outcome of creditor recoveries. For lenders, suppliers and current counterparties, the probe signals intensified scrutiny that may expose previously undisclosed obligations or contingent liabilities.

As work begins, the committee stresses urgency: with potential evidence vulnerable to dissipation, immediate access to records and accounts is essential. While judicial approval of the engagement is standard procedure, the request underscores how bankruptcy proceedings increasingly rely on specialized firms to untangle sophisticated financial engineering and protect creditor recoveries.