Briggs and Stratton Files for Bankruptcy
The small-engines manufacturer is selling off its assets in order to stay operational. Learn more here.
Small-engine manufacturer Briggs and Stratton announced on Monday it has filed for Chapter 11 bankruptcy and volition be selling off most of its assets.
Briggs and Stratton is the globe's largest maker of gasoline engines for outdoor power equipment, providing engines for companies including Deere and Co. and Husqvarna. In a press release announcing the filing, the company assured customers that they would remain operational and functional despite their fiscal situation.
"Briggs & Stratton believes this process will benefit its employees, customers, channel partners, and suppliers, and best positions the Visitor for long-term success," the release said.
This news comes on the heels of reports in late June that Briggs and Stratton'due south board of directors decided to skip a $6.7 one thousand thousand interest payment while voting to give executives and other key employees cash retention awards totaling more $5 million.
According to the Wall Street Periodical, the day before the bankruptcy was announced, the Briggs and Stratton lath also voted to terminate health care benefits for 450 former workers while simultaneously ending life-insurance protection for 4,000 more one-time workers.
The filing includes a bid for more than one-half a million dollars from New York private equity business firm KPS Capital Partners. The money volition keep Briggs & Stratton operational despite the company'south debt. According to the press release, that debt and the touch on of COVID-19 on product sales drove Briggs and Stratton's decision to file for bankruptcy.
"Over the past several months, we take explored multiple options with our advisors to strengthen our financial position and flexibility," said Todd Teske, Briggs and Stratton's master executive officeholder. "The challenges we accept faced during the COVID-19 pandemic have made reorganization the difficult simply necessary and appropriate path forward to secure our business organization.
Teske went on to assure that the filing would not significantly alter twenty-four hours-to-day operations. "Throughout this process, Briggs & Stratton products will proceed to be produced, distributed, sold and fully backed by our dedicated team," he said.
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