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Briggs and Stratton Files For Bankruptcy After Struggle With Sales During COVID-19

Briggs and Stratton filed for chapter 11 bankruptcy this week. On July 20 the news was made public. The same day, it was also announced on MarketWatch that the company reached an agreement to sell most of its assets to KPS Capital Partners. KPS specializes in managing manufacturing companies. Therefore, some say they seem like a promising candidate to revive the declining manufacturer of gasoline engines.

Generally, the real-life impact of these things can be kind of murky. As far as we know, the brand should continue operating normally in terms of what the consumer sees. In other words, Briggs and Stratton products shouldn’t be disappearing from store shelves. Instead, KPS will attempt to reorganize and attack the market again, perhaps in a different way. Going bankrupt doesn’t necessarily spell out a complete disaster as Briggs and Stratton will join the ranks of Apple, General Motors, and Marvel Entertainment as other companies to file for bankruptcy.

Chief Executive Todd Teske said in a statement “Over the past several months, we have explored multiple options with our advisors to strengthen our financial position and flexibility.” Teske also relayed that the brand has faced challenges during COVID-19, saying the pandemic has “Made reorganization the difficult but necessary and appropriate path forward to secure our business.”

This is yet another case that should have policymakers constantly revising their opinions on the handling of COVID-19. It certainly is a job that will come with dire consequences if any wrong move is made. While Briggs and Stratton has been in decline for the better part of two decades, this move is added to the long list of other similar situations that have brought scrutiny to regulations surrounding COVID-19.

It has also been pointed out that the stock has been delisted from the New York Stock Exchange in light of these recent events. The company went public on the NYSE in 1928.