How Briggs & Stratton Went Bankrupt — And Why Your Mower Engine Will Never Be the Same
Briggs & Stratton has been making engines since 1908. Over ten million engines every year. Sold in over 100 countries. Their stock peaked at $40 a share in 2004. By 2020, it was under $1. On July 20th, 2020, they filed for Chapter 11 bankruptcy with over $1 billion in debt. A private equity firm called KPS Capital Partners bought the company for $550 million. Creditors got 7-10 cents on the dollar. Shareholders got nothing.
In this video, we expose what actually killed Briggs & Stratton — how the company removed oil drain plugs from consumer engines and marketed it as "Just Check & Add Technology," switched to plastic carburetors that clog and cannot be rebuilt, eliminated adjustable mixture screws so the engine runs lean from the factory, and chased big box price targets until the quality collapsed. We break down the difference between the Vanguard commercial line that still makes real engines and the consumer line that is designed to last exactly as long as you keep the mower — three to five years.
We also explain what it means that a private equity fund now owns the most recognized engine brand in America, and why their three-to-seven year exit strategy has nothing to do with building engines that last.
In this video, we expose what actually killed Briggs & Stratton — how the company removed oil drain plugs from consumer engines and marketed it as "Just Check & Add Technology," switched to plastic carburetors that clog and cannot be rebuilt, eliminated adjustable mixture screws so the engine runs lean from the factory, and chased big box price targets until the quality collapsed. We break down the difference between the Vanguard commercial line that still makes real engines and the consumer line that is designed to last exactly as long as you keep the mower — three to five years.
We also explain what it means that a private equity fund now owns the most recognized engine brand in America, and why their three-to-seven year exit strategy has nothing to do with building engines that last.
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