Consolidation Reduces Centric Workforce – Los Angeles Business Journal
CWD, doing business as Centric Parts, notified the state’s Department of Employment Development that it planned to lay off 252 employees working at its 200,000 square foot warehouse in City of Industry.
The maker of brake and chassis replacement parts for passenger, commercial and racing vehicles is consolidating its distribution operations into a facility in Patterson, owned by its sister company, Illinois-based Brake Parts Inc. , according to sources familiar with the matter who asked not to be identified.
The layoffs will take effect on May 15. The positions lost will include 180 shipping and receiving handlers, 15 forklift operators and seven inventory clerks.
Centric, founded in 2000, also operates a performance brake brand, StopTech, out of a Compton plant. Its Carson caliper plant closed in 2019 when Centric laid off 286 workers.
Co-founders Dino Crescentini and Dan Lelchuck sold Centric in May 2017 to New York-based Harvest Partners and Boston-based Audax Private Equity. Investors then merged it with AP Emissions Technologies in North Carolina and created an umbrella company APC Automotive Technologies. AP Emissions specializes in exhaust and emissions products for automobiles, light trucks and heavy trucks, including catalytic converters and mufflers.
Three years later, in June 2020, APC Automotive and its subsidiaries filed for Chapter 11 bankruptcy, entering into a restructuring agreement that reduced their balance sheet debt by more than $400 million, according to its former general manager Tribby Warfield.
Shortly thereafter, in September 2020, APACE Holding Co. acquired AP Emissions, and in December of the same year, Cleveland-based auto parts company First Brand Group acquired Centric.
“The addition of Centric Parts significantly expands our caliper capability and the breadth of our catalog, and it positions us as the undisputed leader in the aftermarket brake market,” said Guy Andrysick, president of the aftermarket division. sale at First Brands, in a statement at the time. deal was announced.
First Brand did not provide details of the layoffs, but said through a spokesperson that “port congestion and backlogs in Los Angeles have been driving the shift…of operations to other less congested ports”.