Uniroyal & Vi-Jon File Chapter 11 Over Asbestos and Talc Claims
Legislation & Litigation
Written by Travis Rodgers | Edited by Amy Edel
Uniroyal Holding Inc. and Vi-Jon, LLC filed for Chapter 11 bankruptcy protection within days of each other, as both companies faced mounting litigation tied to products sold decades ago. Uniroyal Holding is seeking to resolve its legacy asbestos claims, while Vi-Jon is addressing lawsuits involving asbestos-contaminated talc used in body powder.
Uniroyal Holding filed for bankruptcy on July 31, 2026, in the U.S. Bankruptcy Court for the District of New Jersey. Once tied to one of America’s largest tire and rubber companies, Uniroyal Holding no longer manufactures products and instead has spent decades handling legal claims tied to its former asbestos-containing products.
Two days later, Vi-Jon filed for bankruptcy on Aug. 2, 2026, in the U.S. Bankruptcy Court for the District of Delaware. The private-label manufacturer faces lawsuits over asbestos-contaminated talc in body powder. Its products reached consumers under retailers’ own brand names, like Walmart’s Equate and Target’s Up & Up.
The separate filings highlight how companies can continue facing significant legal and financial liabilities long after the products at issue leave the market. Both companies plan to use the bankruptcy process to resolve current and future claims.
Decades of Claims Push Uniroyal Into Bankruptcy
About 2,800 asbestos-related claims were pending in 1986, shortly after a 1985 corporate restructuring created Uniroyal Holding. In the more than 40 years since 1985, 516,656 personal injury and wrongful death claims have been filed against the company.
It resolved 216,994 of them while paying just under $500 million, and courts dismissed another 264,232. More than 35,000 cases remain open. Company President and General Counsel Robert V. D’Angelo said in a court declaration that the caseload will become unmanageable once its small internal team retires.
Uniroyal Holding is now turning to Chapter 11 to address that decades-long caseload. The company filed July 31, 2026, in the U.S. Bankruptcy Court for the District of New Jersey, listing $10 million to $50 million in assets against $50 million to $100 million in liabilities. It filed the case with subsidiary Great Hill Corporation and plans to establish an asbestos trust fund to handle current and future claims.
Uniroyal Holding traces its roots to Uniroyal Inc., which began in 1892 as the United States Rubber Company and grew into one of America’s largest tire and rubber companies. A 1985 reorganization split Uniroyal Inc.’s business among 6 subsidiaries, including Uniroyal Holding. The holding company took responsibility for retirement benefits for former Uniroyal employees and legal claims tied to the company’s asbestos-containing products.
Vi-Jon Turns to Bankruptcy as Talc Claims Multiply
Filings against Vi-Jon rose about 400% since 2023, and 28 law firms sued the company for the first time during that period. As of the day Vi-Jon filed for bankruptcy, 367 mesothelioma and lung cancer claims remained pending against the company. NERA Economic Consulting estimated Vi-Jon’s talc-related litigation at $720 million, up from earlier estimates of $59 million to $102 million. The increase reflected more claims, fewer dismissals and higher average settlement costs.
Two jury cases also added to Vi-Jon’s legal liabilities. A Minnesota jury awarded $10.2 million in Heyer v. A.H. Bennett Co. and assigned Vi-Jon 20% of the fault. The court also entered a separate judgment against Vi-Jon for about $16.8 million in Ludwig v. Sumitomo Corp. of Americas. Those cases account for most of the roughly $20 million in litigation judgments Vi-Jon now lists among its unsecured obligations.
Vi-Jon filed for Chapter 11 on Aug. 2, 2026, in the U.S. Bankruptcy Court for the District of Delaware. The company entered bankruptcy with a Restructuring Support Agreement signed with Emprise, Emprise HPC and lawyers representing more than 75% of talc claimants. The agreement calls for current and future talc claims to move into a court-supervised trust under Section 524(g) of the federal bankruptcy code.
Vi-Jon’s history dates back to 1908, when the company started as a small St. Louis manufacturer and later shifted toward private-label products for national retailers. Its talc-based body powder reached consumers under retailers’ own brand names, like Walmart’s Equate and Target’s up & up. A 2006 merger with Cumberland Swan Holdings, Inc. brought another source of talc liability. Cumberland Swan had assumed that liability through a 1999 asset purchase.
How Vi-Jon’s Talc Claims Will Be Paid
Vi-Jon filed for bankruptcy with a proposed settlement for current and future talc-related claims. If the bankruptcy court approves the plan, those claims would be resolved through a talc injury trust.
Where the Funding Comes From
- Cash: Emprise would contribute $25 million when the plan takes effect.
- Company payment: The reorganized Vi-Jon would provide a $1 million note.
- Insurance: The trust would receive Vi-Jon’s rights to certain insurance payments.
- Other assets: The trust could receive money from legal claims and the sale of Vi-Jon’s former St. Louis manufacturing plant.
- Future sale: Emprise Group would make an additional payment if it is sold or merged for $1 billion or more.
Lawyers representing more than 75% of claimants in talc lawsuits signed a Restructuring Support Agreement before Vi-Jon filed for bankruptcy. The agreement supports the proposed settlement and its funding plan.
Vi-Jon’s advisors expect the case to move quickly, with a targeted confirmation date about 110 days after the filing. If the court approves the plan, the talc injury trust would handle the company’s current and future talc-related claims.
What the Filings Mean for People With Asbestos-Related Diseases
Bankruptcy filings like these show why asbestos litigation continues decades after most companies stopped using the mineral. Asbestos-related diseases like mesothelioma can take several decades to develop after initial asbestos exposure, so new diagnoses continue to happen.
People with a confirmed asbestos-related diagnosis can pursue compensation through the bankruptcy trust system when the responsible company is no longer solvent. Settlement trusts like the ones proposed for Uniroyal Holding and Vi-Jon exist specifically to make sure future claims can be paid.
Anyone with questions about a pending or potential asbestos or talc claim can talk with a Patient Advocate who can connect them with vetted attorneys who handle cases like this. Experienced asbestos attorneys can ensure claims are processed correctly and on time.
