Briggs & Stratton announced on Monday an agreement to sell most of its assets to KPS Capital Partners and that it was filing for a Chapter 11 bankruptcy reorganization petition.
The manufacturing company announced in a press release that it was selling most of its assets to KPS Capital Partners for about $550 million.
The company also filed for a "voluntary reorganization under Chapter 11 of the U.S. Bankruptcy Code."
"This process will allow the company to ensure the viability of its business while providing sufficient liquidity to fully support operations through the closing of the transaction. Briggs & Stratton believes this process will benefit its employees, customers, channel partners, and suppliers, and best positions the company for long-term success. This filing does not include any of Briggs & Stratton's international subsidiaries," said the company.
"Over the past several months, we have explored multiple options with our advisors to strengthen our financial position and flexibility. The challenges we have faced during the COVID-19 pandemic have made reorganization the difficult but necessary and appropriate path forward to secure our business," said Briggs & Stratton Chairman and CEO Todd Teske. "It also gives us support to execute on our strategic plans to bring greater value to our customers and channel partners. Throughout this process, Briggs & Stratton products will continue to be produced, distributed, sold and fully backed by our dedicated team."
In June, the company announced that it was moving some of its production to its New York facility.
To learn more about the company's update, click here.