Football helmet manufacturer files bankruptcy
Schutt Sports, one of the largest football helmet manufacturers in the world, has filed for bankruptcy.
The Chapter 11 case is at least partly intended to prevent rival Riddell from getting $29 million in damages owed from a patent case.
According to a report from Bloomberg, Schutt filed for Chapter 11 in Wilmington, Delaware, on September 6, listing both its assets and debts between $50 and $100 million. In late August, a federal court in Wisconsin said that the company's DNA and ION helmets infringed on Riddell inventions and awarded the rival company nearly $30 million in damages.
While Schutt also faces more litigation from Riddell, the report said it blamed several factors for the bankruptcy filing.
"The debtors are faced with a softer demand for their products due to cutbacks in school budgets and, at the same time, operate under an over-leveraged capital structure," Rollen Jones, Schutt’s chief financial officer, said in court papers, the news service relayed.
The St. Louis Business Journal said that Schutt is exploring its long-term options, including selling some or all of its businesses.
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