Wauwatosa-based Briggs & Stratton could sell its Burleigh Street plant and then lease just the southern half of the facility after moving several production lines to facilities in New York, according to court filings in the company’s bankruptcy case.
Briggs announced in June it would move several production lines from its Wauwatosa facility, located just south of its corporate headquarters, to existing factories in New York State. Those product lines include lawn tractors, residential zero-turn mowers, snow throwers and pressure washers.
The decision to move the residential turf and home maintenance product lines out of the Burleigh facility was actually made in March, according to the court documents.
Briggs says its pressure washers will now be outsourced to a strategic supplier as the company looks to simplify its portfolio.
Moving and outsourcing the production of the product lines will allow Briggs to reduce the costs associated with maintaining the Burleigh facility. The company says reducing costs is an essential part of its business plan and asset sale strategy.
As part of its Chapter 11 bankruptcy, Briggs is seeking to sell nearly all of its assets to New York-based KPS Capital Partners for $550 million. The sale would be part of a court supervised process and another buyer could outbid KPS. Bids are due Aug. 28 with the auction currently set for Sept. 1.
Shifting production would also allow Briggs to sell the Burleigh facility and lease back the south half to further reduce costs, according to court filings.
While the shift provides flexibility, no final decision on a sale has been made, a Briggs spokesperson said via email.
The facility is located on a 56-acre lot and has an assessed value of $10.9 million, according to Milwaukee County records. The company owns a second lot to the north of the Burleigh plant along Wirth Street that is home to its corporate headquarters. That property is almost 19 acres and assessed at slightly more than $8 million.
The additional details on the future of the Burleigh facility were part of a request by Briggs for court approval of a partial closing agreement with the United Steelworkers union.
Briggs could terminate up to 185 union members as part of the decision to move production to New York, where the company said in June it would add 125 jobs.
The company estimates it will pay out around $910,000 in severance as part of the move, an average of $4,919 per employee. Severance pay is based on seniority with the company. Employees who have been with the company one year or less would get one week of severance pay with each additional two years of service adding a week. Those with the company 14 years or more would max out at eight weeks of severance.
