Schutt Sports Inc. filed for Chapter 11 bankruptcy protection after losing a patent infringement lawsuit brought by a competitor.
Schutt Sports, a baseball and football helmet manufacturer, filed the voluntary bankruptcy petition in the U.S. Bankruptcy Court, District of Delaware, on Monday.
In the filing, Schutt Sports lists both its assets and liabilities as ranging between $50 million and $100 million.
Schutt Sports filed for bankruptcy after losing a $29 million patent infringement lawsuit in August brought against the company by competitor, Chicago-based Riddell, over football helmets that are designed to prevent concussions. Schutt Sports is appealing that verdict.
Schutt Sports has hired Oppenheimer & Co. Inc. as its investment banker to look for new investors as it pursues a reorganization of the company.
Schutt Sports has obtained $34 million in financing through Bank of America to provide funds to continue operations.
"The company is shoring up its capital structure to assure smooth business operations while they work toward a restructuring plan," said spokeswoman Jen Fleishman.
In a statement, Schutt Sports said it will continue to operate without interruption.
"Schutt's management and board of directors determined that a Chapter 11 process would provide the best long-term solution for our customers, suppliers, and employees," Robert Erb, president and CEO, said in the statement. "This process will allow us to continue operating our business as usual and to continue servicing our customers without disruption."
Schutt Sports is based in Litchfield, Ill., about an hour northeast of St. Louis. It manufactures its products in Litchfield and Salem, Ill., and has a reconditioning facility in Pennsylvania. Companywide, it has 500 employees.
(Editor's Note: This story was updated to correct Riddell's spelling in the fourth paragraph and Lichtfield's geographic location in the last paragraph.)
