One of Milwaukee’s most noteworthy companies has filed for bankruptcy reorganization while selling most of its assets, according to the Milwaukee Business Journal.
Briggs and Stratton has made a deal for $550 million of assets to go to KPS Capital Partners, a $5.7 billion capital equity firm out of New York, Germany and the Netherlands.
They have also filed for Chapter 11 bankruptcy protection.
“Over the past several months, we have explored multiple options with our advisors to strengthen our financial position and flexibility,” said Briggs and Stratton CEO, Chairman and President Todd Teske said in a news release, according to the Milwaukee Business Journal.
“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.”
KPS has also made an agreement with Briggs and Stratton’s hourly workers union, United Steelworkers of Americas.