Engine Maker Briggs & Stratton Files For Ch. 11 Bankruptcy

WAUWATOSA, WI—A more than century-old company specializing in small gas engines has filed for bankruptcy protection. Headquartered in Wauwatosa, representatives for Briggs & Stratton Corp. said the decision to file for bankruptcy stems from its recent financial challenges associated with the coronavirus pandemic.

As part of the Chapter 11 filing, the company has entered into an agreement with KPS Capital Partners for a sale of substantially all of its assets. According to the company, it has secured $677.5 million in Debtor-In-Possession (DIP) financing to support operations throughout the sale and reorganization process.

The company maintains that it "remains well-positioned to continue serving customers worldwide." Following court approval, the DIP facility will ensure that the company has sufficient liquidity to continue normal operations and to meet its financial obligations during the Chapter 11 process, including the timely payment of employee wages and health benefits, continued servicing of customer orders and shipments, and other obligations.

Company reps said this process will allow them to ensure the viability of the business while providing sufficient liquidity to fully support operations through the closing of the transaction. Briggs & Stratton reps said they believe this process will also 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, the company said.

On Monday, Todd Teske, Briggs & Stratton's Chairman, President, and Chief Executive Officer, issued the following statement:

"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. 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.

We have a storied past and a bright future, built on our foundational expertise in applying power. Our portfolio of innovative engines, robust lines of products, and high-performance commercial batteries positions Briggs & Stratton to meet our global customers' needs for power to get work done, now and in the future."

Briggs & Stratton was founded in 1908 in Milwaukee by inventor Stephen F. Briggs and investor Harold M. Stratton. According to the company, it is the world's largest producer of gasoline engines for outdoor power equipment, and is a leading designer, manufacturer and marketer of power generation, pressure washer, lawn and garden, turf care and job site products. Its products are designed, manufactured, marketed and serviced in over 100 countries on six continents.