Car sales have declined across the board, as have sales of just about everything except cleaning products, toilet paper, and bicycles. So far, no automaker has filed for bankruptcy, but at least one engine maker, Briggs & Stratton, isn’t doing as well. As of July 20, the company has filed for Chapter 11 bankruptcy, Market Clock reports. And while that doesn’t mean they’re closing right now, it’s certainly bad news.
In its bankruptcy filing, the Wisconsin-based Fortune 1000 company stated that it had more than $ 1 billion in creditors’ debts, but these financial problems are nothing new. Briggs’ share price has slowly declined since 2017, which was also the last time the company was not operating at a loss. In fact, its share price has decreased since 2004, which is when it peaked at $ 40.00. Today, the company’s shares sell for around $ 0.80.
To be clear, this does not mean that the business will simply go away. The Chapter 11 bankruptcy means that the company is restructuring with the help of creditors in an attempt to make money again. In fact, part of Briggs’ bankruptcy filing includes a $ 550 million offer to buy the company from partners based in New York-based KPS, a private equity firm that owns other brands, including TaylorMade Golf Clubs and the Life Fitness gym equipment. KPS specializes in manufacturing business management, so they are probably a good buyer for Briggs. However, there are others in the mix.
Briggs & Stratton has been manufacturing small engines of various displacement and configurations since 1908, but its most famous model is the versatile, single-cylinder, five-horsepower model known colloquially as the “Five-Horse Briggs.” Its flat-head, air-cooled design makes it one of the simplest motors out there, and it is found in many applications, such as lawn mowers, snowblowers, and go-karts. It also has a variety of other more unconventional uses, which we have covered.
So while bankruptcy is certainly bad for Briggs & Stratton, it is not the end. The company will reorganize and hopefully make a profit again. But even if the company went bankrupt, I wouldn’t worry about a shortage of parts. Briggs makes almost ten million engines every year, and they are absolutely everywhere.
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