CORP/BIZ World's Largest Producer Of Small Gasoline Engines Files For Bankruptcy

[naegling62]

Zerohedge

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World's Largest Producer Of Small Gasoline Engines Files For Bankruptcy.

Briggs & Stratton Corporation, the world's largest manufacturer of small gasoline engines with headquarters in Wauwatosa, Wisconsin, filed petitions on Monday morning for a court-supervised voluntary reorganization under Chapter 11, along with plans to sell "all the company's assets" to KPS Capital Partners.

The Fortune 1000 manufacturer of gasoline engines was able to secure a $677.5 million in Debtor-In-Possession (DIP) financing to support operations through reorganization efforts. The Company also said it "entered into a definitive stock and asset purchase agreement with KPS."

To facilitate the sale process and address its debt obligations, the Company has filed petitions for a court-supervised voluntary reorganization under Chapter 11 of the U.S. Bankruptcy Code. The Company has also obtained $677.5 million in DIP financing, with $265 million committed by KPS and the remaining $412.5 from the Company's existing group of ABL lenders. 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.

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. - Briggs & Stratton's press release states.

Todd Teske, Briggs & Stratton's CEO, stated the Company faced "challenges" during the virus pandemic that made reorganization "necessary and appropriate" for the survivability of 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. 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," said Teske.

Briggs & Stratton is the world's top engine designer and manufacturer for outdoor power equipment, with 85% of the small engines produced in the U.S. The pandemic and resulting virus-induced recession have been brutal for the Company, with declining engine sales, resulting in a reduction in the US workforce.

Financial Times noted, in June, the Company had difficulty refinancing a $175 million bond that matured in September. Sources told FT the Company's deteriorating position made it impossible to obtain refinancing funds in the bond market.

Add Briggs & Stratton to the list of bankrupted companies as an avalanche of bankruptcies is expected in the second half of the year.

Not surprising whatsoever, Robinhood daytraders have panic bought collapsing Briggs & Stratton shares.

The bankruptcy wave is not over, it's only getting started as the virus-induced recession will be more prolonged than previously thought.

 

[Intestinal Fortitude]

canaries are dying

 

[blackjeep]

A true American icon seems to be in serious trouble.
Sad.

 

[KFhunter]

Imported engines like predator

Predator = lifan

Lifan = China

 

[Squib]

The liberals and democrats and Rinos were helping Honda and Toyota get ahead and over take Briggs & Stratton, and Chevy while at the same time killing US companies with over regulation and high corporate taxes...

Now the regulations from the gov and the unfair competition from foreign companies (and with a little help from the unions) have all but assured the death of these iconic companies.

 

[Mtsilverback]

The couple of B&S small engines I have used turned out to be crap. Honda small engines are real good, however, they do not like a handy fellow to rebuild them and price their parts accordingly. Getting parts for the china clones of Honda are impossible to get.

 

[The Mountain]

And keep in mind, this is Chapter 11 bankruptcy, which does not mean the company is folding, just that it needs to reorganize its finances Also, B&S engines have been pretty crappy for quite a while. Small engine makers here in the US (B&S, Tecumseh, Kohler) cheapened themselves a long time ago in the face of overseas competition i.e. Honda and Kawasaki who make quality engines, and now are unable to compete against the crappy engines coming out of China. They did this to themselves.

 

[NoDandy]

Sad. I have preferred Honda engines over B&S for a long time. Never had any luck with Tecumseh.

Would love to see B&S make a great comeback.

 

[ioujc]

OH NO!! They have a branch here and MANY peeps are employed there>>>>>>>NOT good for this little country town...... What NEXT!!??

 

[Publius]

The path they have taken with the engines they produce much of it is their fault.

 

[Dobbin]

Owner has just about given up on Briggs.

The new "environmental" carburetors may have pushed him over the edge.

He buys a new lawnmower from Sears. "Craftsman" brand - made by MTD. Uses it beginning in May until late July it's starting to be a "multi-pull" lawnmower. Brings it back to Sears under warranty. Sears dude hands him a NEW lawnmower. We're near the end of the growing season which peaks in early July. Its August and Owner does the lawn a couple of times more.

Next year - out comes the nearly new lawnmower in May. By late June it too has become a "multi-pull." Owner needs to start the mower with starter fluid (it runs fine on that) and brute strength (It doesn't work so well with that.)

Owner takes the motor off. Measures the "bolt circle" and comes back shortly with a NEW MOTOR for the Craftsman lawnmower chassis. New motor is a Predator from Harbor Freight.

Owner likes his new motor. "It's a Honda Clone" he says. "All parts interchange with Honda and its even made by the Chinese who make all the Honda motors now." This is, of course, the agreement everyone who has things made in China signs with the Chinese. He does have to get separately the correct "blade flange" to fit the new motor which is actually a bigger diameter than the Briggs (This a good thing?)

Also Owner says "Why buy the Briggs & Stratton carburetor for $79.95 plus shipping only to have it plug up again in less than a year? Instead buy the ENTIRE PREDATOR MOTOR for $95 on sale with assurance it will keep working." This pisses off Owner no end. I can tell his mental state when his arms come up with each word he says. I call his odd mannerism "emphatic gesturing." Almost like he is conducting an orchestra?

Now about 8 years later - that Predator motor is still going. The Briggs & Stratton motor is long gone to the dump - and was quick to be forgotten. And the Predator is STILL a 1.5 pull start motor.

Briggs & Stratton WANTED to fail IMHO. They just stopped trying after the failure of Tecumseh, and the market/price separation of Kohler (who will be the next to go.)

Dobbin

 

[Thinwater]

What helped kill them is the crappy China engines are not so crappy any more. They copied the Honda that is much better than the Briggs. While the Chinacrap is not better then Honda, it is very close to the Brigs and at literally 1/3 the price.

I bought an entire new 6.5 HP Predator engine for my go kart for not much more than Briggs wants just for a new carb.

 

[West]

Mandated payroll liabilities/general liabilities and legal organized mafia unions....

ETA, and environmental laws.

Hey, let's tax and regulate all businesses to death. Since the income tax, and getting worse.

 

[The Mountain]

IMHO, lawnmower motors should be two-stroke anyway. Save the 4strokes for tillers, snowblowers (you should have heard my dad back in the 80s when he had to replace the winter-rated Kohler on his snowblower and found they didn't make them anymore) and other high-torque applications.

 

[Publius]

What helped kill them is the crappy China engines are not so crappy any more. They copied the Honda that is much better than the Briggs. While the Chinacrap is not better then Honda, it is very close to the Brigs and at literally 1/3 the price.

I bought an entire new 6.5 HP Predator engine for my go kart for not much more than Briggs wants just for a new carb.

The new style carburetors Briggs is putting out are garbage, yeah they work when new but if any problems arise best throw it away and bite the bullet and pay the $100+ they want for a replacement.
The Chinese Honda knock offs are designed to be serviceable and they even have old school drain plugs on the fuel bowl.

 

[byronandkathy2003]

i have had a few Briggs & scrapon engines over the years i agree they used to be good engines not any more just high priced junk..

the duro max 7hp engine i bought for $168.00 and change runs perfect 1 pull starting and the gas cap says up to 10% ethanol max.
it may be a Chinese clone engine but they are cheap and run great a Briggs costs 2 to 3 times more...

when briggs makes an engine that runs as good and the price is close to or the same as a Chinese engine then i will buy them..

i agree brigg&scrapon went down the crapper a long time ago ..
they need to go back to cast iron engine blocks that would make a big difference on how long they would last.
case in point i have a cast iron kholer k241 10hp engine that is 46 years old and still has a standard sized piston in it and it does not burn oil..

now if all of the u.s. small engine manufacturers made engines that lasted a long time and not cost an arm and a leg they would not be going bankrupt ..
so we will see just how long my duro max honda clone lasts ..

 

[The Mountain]

...when briggs makes an engine that runs as good and the price is close to or the same as a Chinese engine then i will buy them..

i agree brigg&scrapon went down the crapper a long time ago ..
they need to go back to cast iron engine blocks that would make a big difference on how long they would last.
case in point i have a cast iron kholer k241 10hp engine that is 46 years old and still has a standard sized piston in it and it does not burn oil...

Exactly. Either bring the price point down to where the other cheap and semi-reliable engines sell for, or if they insist on charging far more then go back to the older designs that ran for decades with nothing more than regular maintenance.

 

[Bones]

It's inevitable.

So many factors make us die by a thousand cuts.

Briggs would've been history long ago had they not cheapened the quality to meet Asian slave labor wages in competitive business's market pricing.

Confucius say: Never complain about losing jobs and industries while pushing a cart full at Wal*Mart

 

[nebb]

My B&S lawn mower.....3yrs old..non ethanol gas...so far each new cutting season I’ve had to pull off the carb and blow out the jets with air compressor...then runs fine all summer. I’m gonna run it dry this year and see if it makes a difference.

 

[wvstuck]

Buy the cheap China stuff and wonder why your neighbor or you don't have jobs... Buying the Chinese products are what is building their Military... I'll stick to American products where possible and help our economy.

 

[Snyper]

I’m gonna run it dry this year and see if it makes a difference.

Add some Seafoam to your gas and you will be happy.

Sea Foam Motor Treatment | Oil & Fuel Additive | For Gas & Diesel

Sea Foam Motor Treatment is a fuel and oil additive that works to clean and lubricate all types of gas and diesel engines. Safe and easy to use!

seafoamworks.com

 

[nebb]

Add some Seafoam to your gas and you will be happy.

Sea Foam Motor Treatment | Oil & Fuel Additive | For Gas & Diesel

Sea Foam Motor Treatment is a fuel and oil additive that works to clean and lubricate all types of gas and diesel engines. Safe and easy to use!

seafoamworks.com

Already doin it, Seafoam and non-ethanol.

 

[Terrwyn]

Just gives them an excuse to screw over the little guys. Fire employees, not pay small vendors, just the usual corp. BS.

 

[raven]

My B&S lawn mower.....3yrs old..non ethanol gas...so far each new cutting season I’ve had to pull off the carb and blow out the jets with air compressor...then runs fine all summer. I’m gonna run it dry this year and see if it makes a difference.

I put a fuel cutoff on the supply line between the tank and the filter and only put a gallon of fuel in at a time.
Haven't had to put a carb kit on for a couple years

 

[Red Baron]

I'll preface the following comments by stating I am one of the biggest proponents of Made In The USA.

The Briggs and Stratton story was rather personal to our family.

When we moved to the Milwaukee area, Frau Baron found employment at B&S as one of Fred Stratton Jr's personal secretaries.

Frau Baron was a Hard Charger and a Real Go-Getter. Her expertise and drive was soon rewarded by being promoted to the lead Purchasing Planner for the small engine production line at the HQ in Wauwatosa, WI (a near suburb of Milwaukee). B&S produced up to 10 million engines a year in it's heyday.

For about five years Frau Baron spent every day with two radios strapped on her along with a company cell phone and her own golf cart zipping around the gigantic manufacturing facility managing all of the little crisis' that beset any large production line.

Then B&S decided to move small engine production to Missouri. Frau Baron had to travel to Missouri and personally train the people who would replace her. The transition did not go well. Production scrap rates in Missouri soared. B&S cynically moved all of the rejected and scrap parts to Wauwatosa in an effort to hide the problems with the inexperienced staff "Down South" and make the Wauwatosa's numbers look bad.

Finally, the majority of small engine production ended at the Wisconsin HQ. Frau Baron and her boss literally turned off the lights.

For that, I bid a hearty Foxtrot Oscar to B&S and hope their corporate masters burn in hell.

Why on God's Green Earth would anyone here in Wisconsin purchase any products from that egregious pack of malcontents and misfits?

 

[Red Baron]

Just gives them an excuse to screw over the little guys. Fire employees, not pay small vendors, just the usual corp. BS.

+1

Here is a recent clear example of the Corporate Bosses looting the coffers while the company is financially floundering,

Earlier this month, Briggs & Stratton did not make a $6.7 million interest payment while at the same time awarding executives and other key employees more than $5 million in cash retention awards.

Briggs & Stratton is moving production from its facility in Wauwatosa to New York

Production of its lawn tractor, residential zero-turn mower, snow thrower and pressure washer products will move at the end of August.

www.jsonline.com

 

[Dobbin]

It's inevitable.

So many factors make us die by a thousand cuts.

Briggs would've been history long ago had they not cheapened the quality to meet Asian slave labor wages in competitive business's market pricing.

Confucius say: Never complain about losing jobs and industries while pushing a cart full at Wal*Mart

There are those who have been able to "join 'em and beat 'em."

For a long time VW has looked to China to make VW parts. To reward VW's enthusiasm, China now has more VW automobiles on the road than any other country in the world.

Owner owned a VW TDI for thirteen years. He found that for every part available at the VW dealer, there was an Ebay part equivalent - for about 1/4 the price - from an online "pacific rim" seller. No intersecting "circles" - but the same part and possibly a variant on the same part number. Of course there is no knowing if the part in question is TRULY a VW equivalent. I.e. the Chinese just living up to their side of the "make my part for me" agreement, and making the parts themselves.

Owner never had issue with "aftermarket" parts replaced this way. And it saved him a considerable amount of money to maintain what many perceive as a "high-end" automobile.

Now should have Owner purchased the 4x more costly VW part from the dealer? Owner might have decided he can't afford to keep the car - and spend MORE of his hard earned cash for a newer, more reliable vehicle. And this might even be an American car - with about 65 percent foreign sourced parts?

There is no easy horse blanket all covering solution. Buying "American" very simply doesn't cut it because American is American in name only - and has little to do with the actual source of the parts.

Right now Owner is driving a Ford Pickup. He bought it used for small money. So far it seems like a good performer, albeit a little hard on gas mileage. Owner says it's what you get with "Interlocking Directorates." (i.e. same people on the board of Ford as are on the board of Exxon.)

Dobbin

 

[Thinwater]

A company cant play both sides of the "Buy American, even if it costs more" while making a crap product that even the cheap Chinese stuff beats all day long.

I had a commercial lawn service for a couple of years. I had two commercial walk behind mowers with Kawasaki motors, one purchased new, one used. After a year I bought a new mower, brand new with a commercial Briggs engine. By the end of the first season it burned more oil than gas. It was rebuilt completely under warranty and ran great for a few more months. By the end of the second season, it burned more oil than gas and looked like a mosquito fogger mixed with a smoke bomb when I ran it. They said it was no longer under warranty and wanted $1100 for a new motor.

I parked my $3400 lawn mower and went back to just using the now very well used Kawasaki powered machines. I sold the entire business a year later with both Kawasaki machines still running trouble free.

F Briggs, they are a disgrace to American manufacturing. They make crap engines and I personally got screwed by them. To bad, so sad.

 

[West]

Kohler K series engines, I have 4 of them. The best ever, and even a big dummy like me can work on them. And they still make rebuild kits.

 

[Dobbin]

Owner has the K341 on his John Deere 110 lawn tractor.

Bought by his father in 1973 - and while it burns oil (change the gas and fill 'er up with oil) it does run well.

Owner is thinking that new valves and guides might reduce the oil burning.

I would rather he use me for those "small" rototilling jobs. But I don't cut as close a circle at the end-turn.

Dobbin

 

[Countrymouse]

The couple of B&S small engines I have used turned out to be crap. Honda small engines are real good, however, they do not like a handy fellow to rebuild them and price their parts accordingly. Getting parts for the china clones of Honda are impossible to get.

That's true--our lawn mower repair place recc's Kawasaki engines over Briggs/Stratton---says B&S is made in China, now

 

[West]

Owner has the K341 on his John Deere 110 lawn tractor.

Bought by his father in 1973 - and while it burns oil (change the gas and fill 'er up with oil) it does run well.

Owner is thinking that new valves and guides might reduce the oil burning.

I would rather he use me for those "small" rototilling jobs. But I don't cut as close a circle at the end-turn.

Dobbin

It's really easy to pull the head, clean, resurface and adjust the valves. Be a fun winter job. And that will also tell him if he needs to rebuild.

 

[Double_A]

The couple of B&S small engines I have used turned out to be crap. Honda small engines are real good, however, they do not like a handy fellow to rebuild them and price their parts accordingly. Getting parts for the china clones of Honda are impossible to get.

Back in the 1970's and earlier B&S was THE King, not so for last 10-15 years

 

[mikeabn]

Serious dot?

 

[Dobbin]

Serious dot?

Probably not. The market simply has "gone elsewhere." Happens all the time in Free Enterprise.

Next week someone will come up with an overhead valve engine with increased compression, smaller weight to power ratio, and better fuel economy.

No wait - that happened about 10 years ago with the "slant" cylinder engines (i.e. Honda clones) Which report to have longer life because of better cylinder lubrication (caused by the slant.)

Owner keeps looking at Hatz Diesels for the usual semi-stationary applications. He'd like one on his TroyBilt "Horse" roto-tiller (I laugh at that name - Imitation is the sincerest form of flattery.)

Dobbin

 

[Select]

My B&S lawn mower.....3yrs old..non ethanol gas...so far each new cutting season I’ve had to pull off the carb and blow out the jets with air compressor...then runs fine all summer. I’m gonna run it dry this year and see if it makes a difference.

This is a must do, also drain the bowl as well (where the float is )

 

[Tripod]

Bought a new Toro snow blower with a 5hp BS engine 51 years ago. Every year i bring it out in the late fall and start it thinking this might be the time for a new one, but it always works. Only repair has been the electric start about 10 years ago. Looks like you do get what ya pay for.
Mike

 

[TKO]

A true American icon seems to be in serious trouble.
Sad.

Well, what I have been seeing is a lot of these companies file BK then go private...with the same stinking leadership that brought them to BK. Sears, soon JCP, Hertz, etc. Some companies go BK then just open up shop again with the same scum leadership and start the common stock scam all over again. Oh, and then the leaders get paid gazillions to "stick with the company through BK".

 

[Mtsilverback]

Lets just say I try to live a simple life. I live way beyond any sidewalks and utility lines. The only power to my humble shack comes from a generator and I by cheap. I bought the Champion. I can get a good 2 to 3 years service out of one with replacing brushes and springs before the engine gives out. The down side is there are no rebuild kits or spare parts available for them. found a shop in the U.K. that had a spring that breaks on them frequently and that cost me plenty for the shipping. Would be fine if I could get one of those low RPM diesel units they run in an RV.

 

[DryCreek]

I have always been able to revive the new plastic B&S carbs with just about ten minutes worth of disassembly and some time with compressed air. Super easy. I have a garage full of mowers folks were throwing out because they left fuel in the bowl over the winter.

And to whomever said that the parts for the Predator, Lifan and Durmax engines are not available- look no further than Amazon. Not a part there you cannot buy.