Iconic small-engine manufacturer Briggs & Stratton has filed for ‘Chapter 11’ bankruptcy.
The Milwaukee-based company is the world’s largest manufacturer of small petrol engines, having sold over 125 million units.
However, it’s been losing money for some time and carried large debt when the economic downturn caused by the coronavirus pandemic hit.
In quarter 3 ended March 29, sales fell by $107 million compared with the same period last year. The company lost $54.1 million in its 2019 fiscal year and $11.3 million in 2018.
However, this is not necessarily the end for Briggs & Stratton.
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Chapter 11 is a form of bankruptcy that involves reorganization of debts and assets.
Private equity firm KPS Capital Partners LP has entered into an asset purchase agreement with Briggs to buy the company’s assets for approximately $550 million.
“KPS is committed to the expeditious acquisition of Briggs & Stratton to provide certainty of outcome and confidence in the new company’s future” KPS said in a press release.
“The new Briggs & Stratton will be conservatively capitalized and not encumbered by its predecessor’s significant liabilities.”
More on this story on the USAtoday website.
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